Leviability of Service tax on commission paid to a foreign company

[puneet virmani]

'x' is an indian company paying commission to a foreign company situated in U.K for services rendered by it like procuring orders-other laison work etc.Is service tax leviable on this commission paid.

[Surender Gupta]

In terms of Section 66A it appears that it is taxable service in India.

AI Summary

Service tax on cross-border commission: commission for procuring orders by foreign suppliers is taxable under Section 66A domestically. Commission paid by an Indian company to a foreign company for procuring orders and performing liaison work constitutes a taxable service under Section 66A, and such cross-border commission payments to non resident suppliers are subject to service tax when provided to an Indian recipient.