We are a trading company in India. Our buyer in India placed an order on our Singapore Supplier directly. Now Singapore Supplier is transferring commission to us for this transaction, on which we have billed Service Tax to Singapore Supplier.
Can the Singapore Supplier claim this Tax amount as a Credit in Singapore. Kindly advise.
I would like to ask what services you are offering to the Singapore client. On reading the query posted by you, I am of the opinion that the transaction is just trading of goods which is exempted under Section 66D (Negative list) of Finance Act, 1994. Secondly, if you are providing some services to Singapore client outside India then you are not liable to charge service tax as Singapore falls under non-taxable territory and services provided from taxable territory to a non-taxable territory is exempted from service tax.
Thanks & Regards CA Jayant Bothra email: ca.jayantbothra@gmail.com M: 9873-626-020
CAclubindia
