Service Tax Whether Applicable on Commission Received

This query is : Resolved 

14 July 2009 I have a proprietorship wherein I represent several foreign companies. My duties include canvassing their technologies and products in India and giving them a feedback of the opportunities in the Indian market.
All orders are placed by various Indian clients directly on these foreign companies and also all payments are made directly by these Indian clients directly to the foreign companies. These foreign companies do not have anyoffice in India.
After the foreign company executes the order and receives the payment from the Indian client, we raise an invoice on the foreign company for commission which is a percentage of the order value executed by the foreign company. We do not collect any Service Tax separately in the invoice.
The payment is received by us in convertible foreign currency through our bank.
We do not provide any technical service to the Indian clients nor any after sales service.
Are we liable to pay Service Tax?
Thankyou

15 July 2009 No, you are not liable for service tax as this qualify as export of services.

15 July 2009 Thankyou Sir




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