TaxTMI 
TaxTMI 
Applicability - Foreign Commission - Refund Claim
20 Apr 2006 
1 Reply 
1027 Views Asked by
Taxability of foreign agent commission affected by statutory explanation removal; taxpayers should monitor legal developments.
The issue concerns taxability of commission paid to foreign commission agents: an explanatory clause to Section 65(105) had treated such commissions as taxable services, that explanation was judicially challenged, and the legislature later removed the explanatory clause, creating uncertainty regarding liability and refund claims for taxpayers including exporters not registered with excise. (AI Summary)
The issue concerns taxability of commission paid to foreign commission agents: an explanatory clause to Section 65(105) had treated such commissions as taxable services, that explanation was judicially challenged, and the legislature later removed the explanatory clause, creating uncertainty regarding liability and refund claims for taxpayers including exporters not registered with excise. (AI Summary)
regarding service tax on foreign agent commission,whether applicable from 16.06.2005 only or prior also ,as dept is asking from 09.07.2004.. Further whether this service tax can be refunded if the unit is exporting goods and not registered with excise dept. Any other way to claim refund may be guided.
