Liability for Service tax for a person receiving commission from foreign company

[Guest]

If a person who is getting commission from foregn company in foreign currency for arranging parties in India for purchases , is liable to registration under Service Tax Liability ?

[Surender Gupta]

This typoe of cases are border line cases. If any commission is received from a foreign company who does not have any office in India, and he is the recepient of such services, then it should be treated as export of services and should not be liable to tax.

[Amit shah]

Hello Sir ,

what are the process for receiving foreign commission , plz give me gudelines .  on EMAIL [email protected] 

contect number

+91 9029316897

AI Summary

Export of services: commission from a foreign principal may be outside service tax if the payer lacks Indian presence. Where a foreign company without an office or presence in India pays commission in foreign currency to a person who arranges Indian purchasers, the commission may qualify as export of services and thus be outside service tax registration and levy, subject to factual determination of the payer's absence of Indian presence and place of provision.