Rate of service tax

[JOSHIL JAIN]

One of my client is export oriented ltd. company. It pays commission to overseas agents at the end of year on sales invoices raised during the whole financial year. Now i want to know at what rate it should deposit service tax ( under import of services ) on sales invoices raised before 24.02.2009 - (a) if invoices of commission from foreign agents is received in month of March 2009 ( for invoices raised before 24.02.2009) and commision is paid in April 2009. 9b) if invoices from foreign agetns is received before 24.02.2009 but the commission is paid after 24.02.2009 Joshil Jain

AI Summary

Service Tax Rate for Overseas Agent Commissions Depends on Service Rendered Date: 12.36% or 10.30% A client, an export-oriented company, pays commissions to overseas agents annually. The query concerns the applicable service tax rate on commissions for sales invoices raised before February 24, 2009. If invoices from foreign agents are received in March 2009 and paid in April 2009, or received before February 24, 2009, but paid after, the service tax rate is determined by the date the service was rendered. The rate is 12.36% for services rendered from April 2008 to January 2009, 12.36% from February 1 to 23, 2009, and 10.30% from February 24 to March 31, 2009.