Business Auxillary services

This query is : Resolved

amol (Querist)
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09 April 2009 we are merchant exporter, exporting textile machinaries as well as yarn products. we have foreign based agents who provide us after sales services & payment collection. we paid them commission on that we are charging service tax to them. till sept 08 we charge & paid service tax on this commission amount. my query is that service tax on such commission (comm. on yarn products) is exempt from tax or not.
commission paid to foreign agents for selling yarn products is exempt from service tax.

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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09 April 2009 You are actually importing Business Auxiliary service from your overseas agent.You would be liable for payment of service tax on the commission paid to overseas agents as per import of services rules.