Service tax on Commission

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 November 2010 Our company is a 100 % EOU. we has engaged an agent in europe to canvas customers on bahalf of us and we are paying commission to the party. My query is whether we has to pay service tax on sales commission. If so please quote the section/ rule in service tax regarding the same.

06 November 2010 yes, under section 66A read with Rule 2(1)(d)(iv) of service tax Rules and Rule 3 of service tax( service provided from outside) rules. study these rules properly, you will get your answer.

06 November 2010 Taxable service rendered by a citizen other than india as an agent of a citizen of india residing in india or to a compnay which is incorporated in india,

this transaction will be treated straightway import of service, and will be taxable.


09 November 2010 Yes ST Charge is there under section 66A of finance Act and one can take CCR after Payment of Same.



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