Well, Here is a case of new entrepreneur who has visited me today ....
Mr.X (Indian Resident) is a sourcing agent for garments to Mr.Z who is a UK Resident. Mr.Z doesn't have any place of business office in India. Mr.X enters into an agreement with Mr.Z for making sure that Mr.X will be responsible for good quality of goods to be exported to Mr.Z business centre in UK. Mr.X will be receiving (in foreign currency) Commission on the basis of FOB Value on goods exported to UK.
Is Mr.X liable to Service Tax?
If Yes on what basis?
Will it not be considered as Export of Services outside India?
Please answer....
thanks and regards
udhay
what about the following questions...
1. the services are delivered outside india to a Non
Resident.
2. The service charges are recd in convertible forex
3. the benefits of the services are not derived with in India
4. There is no place of business for the service receipent...
can u explain for the above doubts??
CAclubindia
