Applicability of service tax on commission from abroad
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2013
Hi,
I make buyer and seller connect and earn commission on that.
For Eg: Buyer is from Japan and Seller from China and I earn commission from Seller in USD in my account.
Is service tax applicable on this transaction? If yes then what is the criteria ??
I make buyer and seller connect and earn commission on that.
For Eg: Buyer is from Japan and Seller from China and I earn commission from Seller in USD in my account.
Is service tax applicable on this transaction? If yes then what is the criteria ??
15 July 2013
You will pay service tax under reverse charge system.
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2013
So if suppose i receive 100USD that means it is inclusive of Service tax component of 12.36% rt? i.e.total what is receive is 112.36% ?
So what is the time to pay the service tax in this case.??
And also do i need to file the Service Tax Returns
So what is the time to pay the service tax in this case.??
And also do i need to file the Service Tax Returns
26 July 2013
The service receivers are in non-taxable territory. In my opinion, as per the education guide 5.3.2 if a service recipient is in non-taxable territory as per the place of provision rule, service tax is not applicable. The transaction takes place in foreign countries.
And the commission is also received in USD. So, a fresh thinking is necessary
And the commission is also received in USD. So, a fresh thinking is necessary
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