Please Help: Service tax applicable on Sales Commission recieved from abroad
Posted Date : 15-Mar-2012 , 09:05:23 am | Posted By: Aashish Kumar Jain
Category :
Service Tax | Answers :
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One of my client has earned income as sales commission from abroad in a deal from a foreign buyer. He is also running his trading business.
Please tell me whether service tax applicable on the same and how .
Please reply soon
Thanks in Advance |
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| Posted By : Awadhesh Kumar Chaudhary |
15-Mar-2012, 12:45:41 |
| The exemption from service tax is admissible only in those cases where the service is considered as Export of service under Export of services Rules.
The service provided by you is covered under notified taxable service “Business Auxiliary Service”.Only when the service is rendered outside India; the service is treated as Export of service in such cases.Since the service is being rendered in India; you are liable to pay service tax.However, you are entitled to small scale exemption if your commission is below Rs 4 lakh |
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