1) As per new rules of service tax, Is Service tax applicable on the Indian Company who is a rep. and distributor of a foreign company. Indian company gets commission in US Dollars from the foreign principal company towards marketing/promoting its products to customers in India.
2)If service tax is applicable then how would its invoice be made as commission received is in USD.
25 September 2012
Service tax will be applicable on this services because place of provision is India. Recipient of commission will raise the invoice to provider of commission.
Thanks for your reply. But will it not fall under Export of services and so no service tax.
However, if you think service tax is applicable, as you said invoice will be made on the name of principal company who is situted outside India. Shall we mention service tax in that Invoice. Foreign company won't give service, tax for sure. So will Indian company pay that amount?
CAclubindia
