commission agent

[Mukund Thakkar]

one person who is located in india, and he is earring commission from overseas company, his roll is sales over seas sellers goods in other country buyer is also over seas not in India, he is raised the invoices for his commission to over seas sellers. and reimbursement coming his bank in Indian rupees in such transaction service tax is applicable. Invoice is raised in US$.

AI Summary

Service Tax Applicable on Indian Commission Agent's Intermediary Services for Overseas Transactions Under Rule 9(c) POPS Rules, 2012. A commission agent in India, earning commission from an overseas company for facilitating sales between overseas sellers and buyers, inquires about the applicability of service tax on his transactions. The invoices are raised in US dollars, and reimbursements are received in Indian rupees. Responses indicate that the agent's services are classified as 'intermediary services,' making the place of provision the service provider's location, which is in India. This means the service tax is applicable as it is a destination-based consumption tax, and the service is used or consumed in India, as per Rule 9(c) of the POPS Rules, 2012.