Can exporter pay brokerage/commission 3% on exports items to overseas broker/commission agent without Service tax charged/paid ?
3 Replies
Pradeep Kamath
(Chartered Accountant)
(134 Points)
Replied 03 January 2011
As per notification no 18/2009:
service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him is exempt subject to the condition that:
1)The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be.
2) The exemption shall be limited to one per cent of the free on board value of export goods for which the said service has been used.
Pradeep Kamath
(Chartered Accountant)
(134 Points)
Replied 03 January 2011
So, value of commission over and above one percent of the FOB value of export will attract service tax.
shanmukha
(tax consultants)
(65 Points)
Replied 31 October 2012
one of my client was doing brokerage business and receives commission. can he come in the perview of service tax if his gross receipts exceeds R. 10 l;acs. please urgent
shanmukha
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