Commission received from outside India

[DK AGGARWAL]

Sir

We are receiving commission from outside India against the order booked by us for goods supplied direct to the Indian customer by supplier.

Please inform if ST is applicable on the commission received by us as we cannot issue Invoice to the supplier charging Service Tax and also he would not like to pay.

D K Aggarwal

AI Summary

Service Tax Applicable on Indian Agents' Overseas Commissions Post-October 2014 as per Rule 9 of Service Rules 2012. A query was raised regarding the applicability of service tax on commissions received from outside India for orders booked by an Indian agent. The discussion clarified that, effective from October 1, 2014, under Rule 9 of the Place of Provision of Service Rules 2012, the location of the service provider is considered the place of provision. Therefore, service tax is applicable on such commissions received by an Indian agent from abroad. Several participants confirmed this interpretation, and the inquirer expressed understanding and appreciation for the clarification.