Service tax on overriding commission

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 if an indian company promotes sales of products of foreign principals in india,then whether commission received from foreign principals in foreign currency is taxable in india.is service tax applicable on such a commission income ?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

17 April 2012 Dear Author,
It can not be said as export of service and service tax will be applicable under "business Auxiliary Services".

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 But as per point of taxation rules,business auxiliary services falls under services on the basis of location of the recipient,,,,in that case it should be treated as an export of services as the recipient is located abroad..../???///?

Upgrade to CAclubindia Pro. Subscribe Now!