Our company is exporter of Hosiery goods,and while making agreement with buyer ,he wants that agent commission is to be mentioned in the sales invoice and the same amount is deducted while making payment by the buyer and he remitting to their foreign agents. In this case we are not dealing & concerned with the agent and they are directly paid by the buyer from our bill. Now service tax authorities claim that service tax should be paid on foreign agent commission. We are claiming that we are not recipient of any service from the agent and also it is directly paid by the buyer . Please clarify whether we are liable to pay service tax in this case.
CAclubindia
