commission received from foreign universities

[satbir singhwahi]

Commission is received from foreign universities for students sent to that universities. Whether exempt as export of service.

AI Summary

Foreign University Commissions for Student Referrals Qualify as Export Services, Exempt from Tax Under Rule 6A, 1994. A query was raised about whether commissions received from foreign universities for sending students are exempt from service tax as exports of service. One response indicated that if the service is provided on a Principal to Principal basis, it qualifies as an export and is not taxable. However, if acting as an intermediary, it is taxable since the place of provision is India. Another response cited Rule 6A of the Service Tax Rules, 1994, explaining the conditions under which a service is considered an export, concluding that such activities qualify as exports and are exempt from service tax.