Service Tax notification 18/2009

This query is : Resolved

santosh reddy vancha (Querist)
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24 July 2009
2 zzb) Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.

The exemption shall be limited to one per cent of the free on board value of export goods for which the said service hasbeen used.

The above notification is not clear to interprete, say when 3% commission is paid, whether we can claim exemption on 1% and pay service tax on balance 2% .

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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25 July 2009 In my view ,the exemption is limited to 1% (As per Notification No. 18/2009), you can claim exemption limit upto 1% and pay the service tax on balance amount.