LALITHA V (Consultant) (24 Points)
21 May 2016Sir,
Iam in india working as a agent to a german company.I create business for them in India and iam paid comission for the business created in India in euro. I raise my invoice quartely. Whether iam lible to pay both service tax and income tax? Kindly guide me.
Looking forward your valuable suggestions
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 23 May 2016
You are liable to pay the service tax as you are providing an intermediary service. The Place of Provision according to Rule 9(c) of POPR shall be the Location of the Service Provider. In this case being a service provider located in the Taxable Territory you are liable to pay service tax. Moreover, the provision of this service would not amount to export of service as the POP is in India and not outside India .
Excel Mastery Program
CAclubindia
