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$.

[YAGAY andSUN]

Please check the place of provision of services in this matter.

[Vijay kumar]

For intermediary services, the place of provision is the location of the service provider. Accordingly, your activity is liable to service tax. Further, service is used or consumed in India. ST is a destination based consumption tax and hence taxable

[Manoj Agarwal]

Prima Facie, the person is providing 'intermediary services' to a person located in Non-Taxable Territory and Rule 9(c) of POPS Rules, 2012 is applicable. The place of provision of service is the location of the service provider i.e. in Taxable Territory, so the service tax is attracted.

AI Summary

Place of Provision of Services determined by provider location makes intermediary commission earned from overseas taxable as service in India. Place of provision analysis governs taxability where an India based agent provides intermediary services to an overseas principal. Under Rule 9(c) of the Place of Provision of Services Rules, 2012 the place of provision is the location of the service provider, so commission invoiced to a non resident principal is treated as provided in India and attracts service tax, with destination based consumption tax principles and domestic use/consumption supporting taxability.