Service tax

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charteredaccountantgarimasethi (Querist)
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11 January 2013 if a company is engaged in export of goods & has employed local agents for the purpose of export whether the company has to pay the agent the bill amount along with service tax? And can the company can get back the same amt of service tax as input credit?

srinivasan

srinivasan (Expert)
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12 January 2013 We assume that the local agent performs the activity in India then under the Point of provision of services it would fall under rule 4 where the service is performed whether or not they handle the goods. Even other wise it will fall under the general rule 3 i.e the place of service receipient. In both the cases the service tax is to be paid.

srinivasan

srinivasan (Expert)
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Kaushik Vinod

Kaushik Vinod (Expert)
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13 January 2013 The Service tax paid on the Services of Agents to export the goods can be booked as provided it satisfy the conditions of Rule 2(l) of CCR,2004.
The export incentives can be claimed in Service tax in terms of Rule 6A and if you are manufacturing entity then as relevent excise provisions.

Thanks