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TMI BlogService Tax on payment to commission agent in abroadX X X X Extracts X X X X X X X X Extracts X X X X ..... Hi... My company has made an export through a commission agent. The commission agent is in abroad. I just wanted to know that whether service tax will be leviable or not. I am not registered for service tax. Please reply... - Reply By ROHAN THAKKAR - The Reply = Dear Sir, The service tax will not required to be paid on the services provided by commission agent who is abroad for export as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxation of Services (Provided from Outside India and received in India) Rules, 2006 talks about services received in India. In this case, service of commission agent is not received in India but has been received in the foregin country. Even if we treat as import of service, but the said service is in relation to Export Goods. Consequently, its credit can be utilised for payment of service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x on domestic services. Alternatively, its refund can also be obtained. Hence, service tax will not be required to be paid. Regards, Rohan Thakkar 9228720536 - Reply By pradeep khatri - The Reply = Kindly refer Notification No. 18/2009-ST dated 07-07-2011 in this regard. - Reply By Dilip Darji - The Reply = Dear Sirs. As per Section 66A, w.e.f 18/04/2006, if Service provider (yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur commission agent located outside India) (a) has establised a business in a country otherthan India (b)has a fixed establishment from which service is provided or to be provided, in a country other than India (c)has his permanent address in a country otherthan India (d)has his usual place of residence in a country otherthan India ........and the the service Receiver (you) (a0 has his place of Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness in India (b)has his fixed establishment in India (c)has his permanent address in India (d) has his usual place of residence in India........such service shall be deemed to be a taxable service and such service shall be treated as if the service receiver had himself provided the service in india and shall be liable to service tax. You (as Service Receiver) are certainly covered in a codit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Section 66 A, but your Commissioner agent (as a Service Provider) is not fulfilling the conditions of Section 66 A and therefore, service received by you, shall not be taxable. - Reply By NEERAJ KUMAR, RANCHI - The Reply = What Mr Khatri has said is correct, if ur case is covered under Notification No. 18/2009-ST ,it is is exempted, But if it is not then in my opinion you have to pay s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax on the amount. As of now even if the service has been provided in abroad, the receipient in India is liable to pay service tax.. There are many cases under dispute on the matter. One case of M/s Ankit Exim is pending with the Hon'ble SC. - Reply By sv bhasker - The Reply = I agree with Mr Pradeep Khatri. You have to pay tax first as commission falls under BAS which falls under categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory (iii) of Rule 3 of provisions of Taxation of Services (Provided from outside India and received in India) Rules, 2006 . You may have to file refund claimin terms of Notification No. 18/2009 if you do not take credit of service tax paid.. - Reply By sv bhasker - The Reply = I am correcting myself. Exemption under 18/2009-ST is available only if the commission is less than 1% of F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OB of goods exported. Further, it is not refund based exemption as I opined earlier. - Service Tax on payment to commission agent in abroad - Query Started By: - Pushpinder Kaur Dated:- 30-8-2011 Service Tax - Got 6 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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