service tax liability

This query is : Resolved

parimal (Querist)
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22 February 2010 We have availed exemption under Notification No.18/2009 ST Dated:07/07/2009 for service provided by a commission agent located outside India.

If we pay Rs.12,000 for commission to a commission agent located outside India on Rs.1,00,000(free on board value of export goods)

Q.1 How to calculate service tax liability for the above payment?

Jigar

Jigar (Expert)
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24 February 2010 The amount of Rs. 12000/- is considered as inclusive of tax and tax is to be calculated by following formula

Amount paid
------------- x 10.3
110.3