Show commission to agent o/s

This query is : Resolved

Mamta Batra (Querist)
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11 June 2012 Dear Members,

Is Indian company liable to pay service tax on the commission to be paid to agent outside India.

Agent is solely responsible to contribute 100% to the sale related to the event which shall be organised in India by the Indian company.

Thanks
Mamta

shashikumar

shashikumar (Expert)
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11 June 2012 Dear Mamtha,

Service tax need not be paid since commission payable is not a service

Mamta Batra

Mamta Batra (Querist)
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11 June 2012 Agent is promoting sale of the company and in lieu of that he is entitled to commission.

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Mamta Batra

Mamta Batra (Querist)
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11 June 2012 Agent is promoting sale of the company and in lieu of that he is entitled to commission.

Dayal

Dayal (Expert)
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11 June 2012 In the current scenario commission is covered under business auxiliary services which is a taxable service. This category is also clarified to be falling under 3rd category of services in relation to business or commerce and service tax is payable under sec 66A where you are liable to pay if the recepient does not have PE in India, irrespective of its performance or place of provision.

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