Service Tax on Commission to be recieived from Foreign Subsidiary, Service Tax

[Pradeep Jain]

Our Company  had issued a corporate guarantee  to Foreign Bank at out side of India on behalf of our subsidiary in Switzerland, AVTEC (Europe) Power-train Limited. For this purpose we have raised an invoice of CHF 71,877/- on our subsidiary on 31^st Mar 13 for commission for providing the above said  Corporate Guarantee

Please advice whether service tax will be applicable on the same.

 Regards

 

Pradeep Jain

Posts / Replies

[Pradeep Khatri]

No it will be treated as Export of Service. For details please also check Place of Provision of Services read with Point of Taxation Rules