SERVICE TAX ON COMMISSION ON HIGH SEA SALES INVOICE

[Rajeev Khulbe]

GOOD AFTERNOON TO ALL MY EXPERT,

I NEED SOME ADVICE REGARDING SERVICE TAX ON COMMISSION. SIR IS SERVICE TAX APPLICABLE ON HIGH SEA SALES INVOICE. FLAT RATE 15 %

AI Summary

Debate on Service Tax Applicability: High Sea Sales Exempt, But Commission Taxable Under Reverse Charge. A discussion on service tax applicability on commission for high sea sales invoices raised questions about whether such sales are taxable. One participant explained that sales occurring on the high seas, beyond 200 nautical miles, are exempt from sales tax as they are considered non-taxable territory transactions. However, if the purchaser is in a taxable area, they must pay service tax on sales commission under the reverse charge mechanism. Other contributors argued that no commission exists in high sea sales, only a margin from trading, which is not subject to service tax. The discussion highlighted differing opinions and interpretations.