12 November 2009
We are a proprietor company with money transfer as main business. We deal with most of the money transfer providers in the world. We earn commission for the payment made to the beneficiaries. All together our commission is less than Rs.2.00 lacs per year. I just want to know whether money transfer comes under Business Auxiliary Service. If yes, then will the threshold limit is applicable to us. Pls clarify?
Guest
Guest
(Expert)
12 November 2009
If you are providing service to a foreign agency like WUM, your service may qualify as export as clarified by the Board.
Threshold limit is not applicable in the case of import of services. As you are service provider and your gross taxable value is below Rs 10 Lakh, you are not liable to pay service tax.
12 November 2009
Agreed with expert Dinesh Kumar. Ensure that you receive the money to your account in India in foreign exchange. You are not liable to pay service tax on these amounts. However, although nothing is written in the law, department is asking the provider of service to register on crossing 9 lakhs even though commission received being service export is not taxable. It seems you have to register but not pay.
12 November 2009
Fine, If i receive the commission from a WU primary agent in India in INR, then what will be the case? Will i come under treshold limit?
CAclubindia
