Export of services treatment for foreign commission income confirmed where service recipients were located outside India.

Commission received from foreign clients for arranging sale or purchase of goods was treated as consideration for an export of services because the service was rendered to recipients located outside India. The fact that the arrangement ultimately resulted in sales of goods in India did not change the service's export character. Following prior decisions on the issue, CESTAT Mumbai held that the activity qualified as export of services and was not liable to service tax.

---

---

Issues: Whether commission received from foreign clients for arranging sale or purchase of goods constituted export of services and was exempt from service tax.

Analysis: The service was rendered to clients situated outside India and the recipient of the service was located outside India. The fact that the arrangement resulted in sale of goods in India did not alter the character of the service for export classification. The Tribunal treated the issue as no longer res integra and followed earlier decisions recognizing such services as export of services.

Conclusion: The service in question was export of services and was not liable to service tax.

---