Arunashree ( Finance Manager) (117 Points)
18 August 2010Indian Company is helping a Foreign Company to conduct their Liason activities in India, and for those services Foreign co. is paying Commission in foreign currency to Indian company.
Pl tell whether Indian company has to add service tax on the commissions payable or not.Pl reply asap.
CA dillip
(Head Finance)
(74 Points)
Replied 19 August 2010
Service provided outside india and consideration received in convertible foreign exchange is to be treated as Export service and hence is exempt from service tax.
Regards
CA Dillip
Arunashree
( Finance Manager)
(117 Points)
Replied 19 August 2010
Service is provided in India not outside India. Pl tell whether Indian co. has to add service tax on the commission receivable or not.Pl quote applicable section ,if any.
CA dillip
(Head Finance)
(74 Points)
Replied 20 August 2010
Service provided from India and used outside India is also under the definition of Export of service. Hence exempt from Service tax. Pls read the definition of Export of service from Export of Services rule. you need not to add service tax on service invoice.
Thanks
CA Dillip
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