TaxTMI 
TaxTMI 
We have engaged commission agent located outside india. He help us in procuring and delivering the order.
Are we liable to pay service tax under reverse charge on commission agent service or is there any exemption in this regard?
Service tax
24 Sep 2013 
3 Replies 
1453 Views Asked by
Service tax on foreign commission agents: exemption for exporters available subject to prescribed notification conditions and documentation.
Services provided by a commission agent located outside India to an exporter are potentially taxable under reverse charge, but a statutory exemption permits relief where the service is used for export of goods and the exporter satisfies conditions: declaration of commission in the shipping bill, adherence to a value based cap tied to FOB value, prior intimation to tax authorities, registration and membership requirements, issuance of invoices in exporter's name, certified half yearly returns with original payment proof and contract copies, and specified certification of documents; specified exclusions and payment-on-excess provisions apply. (AI Summary)
Services provided by a commission agent located outside India to an exporter are potentially taxable under reverse charge, but a statutory exemption permits relief where the service is used for export of goods and the exporter satisfies conditions: declaration of commission in the shipping bill, adherence to a value based cap tied to FOB value, prior intimation to tax authorities, registration and membership requirements, issuance of invoices in exporter's name, certified half yearly returns with original payment proof and contract copies, and specified certification of documents; specified exclusions and payment-on-excess provisions apply. (AI Summary)