Service tax applicability on commission paid abroad

[pardeep bisht]

please confirm if service tax is applicable on commisions paid to parties whoes office are not in in India.

AI Summary

Service Tax Exemption on Commissions to Overseas Offices When Used for Exporting Services Under Notification No. 18/2009 A query was raised regarding the applicability of service tax on commissions paid to parties with offices outside India. The response clarified that such payments are considered as Import of Service. However, under the new service tax scheme, if these services are used for exporting services, an exemption can be claimed directly, referencing notification no. 18/2009.