foreign commission agent reverse charge

[satbir singhwahi]

Commission is paid to foreign agent resident outside India , whether reverse charge is applicable now.

AI Summary

Reverse Charge Not Applicable on Commissions to Foreign Agents Post-2014 Amendment Under Rule 9 of Service Provision Rules A discussion forum addressed whether reverse charge is applicable on commissions paid to foreign agents. Initially, it was suggested that reverse charge applies, referencing Notification No. 30/2012-ST. However, changes effective from October 1, 2014, in the definition of 'intermediary' under Rule 9 of the Place of Provision of Services Rules, 2012, indicated that such commissions are not taxable under reverse charge. The consensus, supported by multiple contributors, concluded that post-amendment, there is no service tax liability on commissions paid to foreign agents for exported goods, negating the need for filing certain tax returns.