19 October 2012
Query---One of my Indian client is working as a sales agent with Chinese company. The Chinese company has no office in India and my client works from Kanpur from his own office. Client is getting some fixed amount on monthly basis. He also gets some extra commission after crossing the sales target fixed by the company. The amount is received in foreign currency and converting in to Indian rupees. Now my question is that what is the applicability of service tax on my client? Does this service would fall under export of service??
19 October 2012
yes this typeof service falls under rule 3 of the place of provision of services rules which specifies that if the recepientis outside India + CFE- then no ST.