Suhas (CS) 23 December 2013

Need help on forign commisssion

My freind is representative for a German company for industrial products. in large contracts he quotes on behalf of german company. the german gives base price and he does all communication and marketing. the order value above base price is his and he raises bill for this to german company which transfer the money in Euro to him.

is the amount received in this case chargable under service tax and is my friend liable to pay. the department is asking for payment for the aount received since 2007.

please help

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3 Replies

saravanan (articled assistant) 19 April 2014

Hi Subas,

Considering the provisions of Service Tax law, the service provided by your friend would be outside the purview of Service Tax law under both pre and post negative list.

Hence, Service Tax would not apply in the instant case.

CA Archana Yadav (FCA) 13 May 2014

Dear Suhas,

Did ur cleint received the SCN. In case yes, they would have cited the reasons/basis for the raising of this SCN. However , from the details quoted by you above , it seems to be export services and not liable to tax, but a finer details needs to be evaluated to come to conclusion.