Sevice tax on buying agents
This query is : Open
16 November 2013
One of my clients is acting as a Buying Agent in India for a Principal based out of India.
His business primarily is to help his Principal, who is outside India, to buy premium see food products from India and selling them in his own country. In return, the agent gets a commission based on a %age of value of products bought.
My query is:-
1. Whether the activity carried out by the agent is a service ?
2. If yes, whether the service tax would be applicable given the fact that principal is based abroad ?
I have read somewhere that buying and selling agent's (like above) activities are out of scope of service tax.
His business primarily is to help his Principal, who is outside India, to buy premium see food products from India and selling them in his own country. In return, the agent gets a commission based on a %age of value of products bought.
My query is:-
1. Whether the activity carried out by the agent is a service ?
2. If yes, whether the service tax would be applicable given the fact that principal is based abroad ?
I have read somewhere that buying and selling agent's (like above) activities are out of scope of service tax.
16 November 2013
As per the Place of Provsions Rules,2012, the place of provision lies at the location of the service recepient which in this transaction is in non-taxable territory, no tax is payable.
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19 November 2013
Thanks Mr. Jain !!
Could you please also clarify whether these services were taxable or not under Export of Service Rules 2005, prior to introduction of POP rules 2012.
Thanks !!
Could you please also clarify whether these services were taxable or not under Export of Service Rules 2005, prior to introduction of POP rules 2012.
Thanks !!
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