Commission paid to foreign agent, Service Tax

[Mr. CHANDER PARKASH]

WHETHER THE COMMISSION PAID TO FOREIGN AGENT ON EXPORT SALES IS EXEMPT? IF HE IS ALSO NRI?

Posts / Replies

[Surender Gupta]

These cases are borderline cases. I believe that the legislature should come forward to issue some clarification in this regard. However, the important point of consideration is that where and to whom the services has been provided. And in this case service would have been provided into India for the making of sales outside India. Service Tax shall be payable on the Commission paid to foreign agent on export sales. Further, there is no difference that such foreign agent is NRI or otherwise.

[Ajay Manchanda]

Yes,