We have a commission agent for selling goods out side India in Egypt,Hence we receive the service in Uttrakhand, So my query is this, That is this service is taxable if yes than plz define me the rate and in which taxable service it fall for accounting.
Last Nov. 15 we had a Service tax audit in which the Auditor find the ledger of Commission on Export sale on which we did not pay service tax, But he said that this is a taxable service and told us to deposit the S tax with full rate 14.00% with interest and penalty under Business Auxiliary Service so nov 16 to till date we are depositing the S tax if we have paid any commission on export sale. Plz Sir clear the matter whether did we pay wrongly or we should pay on this.
13 September 2016
As service provider is Egyptian, no service tax payable on such intermediary service. You paid service tax wrongly. Claim refund on service tax paid wrongly including the interest and penalty. Audit has given you wrong advice.
CAclubindia
