02 June 2010
A ltd a foreign compsny supplies an instrument to an Indian based company. B was an agent who recommended and introduced the Indian compay to purchase instrument by A ltd. A ltd paid commission to the agent. Whether there is any attraction of service tax liability through reverse charge mechanism? If so under which category? What exemption can such agent claim???? how much??? relevant section supporting the exemption
02 June 2010
This service comes under commission agent under business auxilairy service. For export ( since it is used outside India by the forign co) + if money recived in convertible foreoign exchange thsi service wouldbe considered as an export of services no ST liability.
CAclubindia
