Commission from foreign company - Service tax applicability, Service Tax

[P. M.RAVEENDRAN]

Basically commission is taxable under Business Auxiliary Services. (i) One export order received by the X, Person outside India , from China to Africa . The company gets commission in foreign currency from X, for arranging the order. (ii) For identifying the party, Company pays commission to Y in foreign currency. Whether (i) comes under Export of Services and no Service tax applicable? Whether (ii) comes under Import of Services and Service tax is applicable under reverse method ? Thanks

Posts / Replies

[Surender Gupta]

As per our understanding this service is neither export nor import. This service is not taxable in India. However, details analysis of facts and circumstances may give some different results.