applicability of service tax on commission received from abr

This query is : Resolved 

08 June 2009 sir
our clint engaged in the manufacturing of animal vaccine and other related products in india. And they also engaged in rendaring of mrketing services.

QUERY

Based on browising network in india had by our clint, they found few potential custmars in abroad who are seeking to buy glysarin.

Our clint passed on this information to a foregin supplier on commission basis. The foregin supplier has excuted the order and for which they paid commission to our clint.
was the commission received is liable for service tax?.

09 June 2009 Commission income is chargeable to Service Tax under "Business Auxiliary Services" if you are doing any work in India for which you are receiving Commission then it will be Taxable Service in India.

You cannot also claim the benefit of Export of Services...b'coz the proceeds are not received in foreign exchange.



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