Export of Services - Commission from foreign country

[puneet virmani]

's'is an indian firm .procuring orders for a foreign company and gives list of orders to that foreign company.Further there is no dealing between 's'and the other indian firm.After recieving list that forein company deals directy with the indian company who ordered for its products. 's' recieves commission for this in US$ remitted through bank .As per export rules it seems covered under export rules --correct or not ! Explain.

AI Summary

Indian Firm 'S' Exempt from Service Tax Under Export of Services Rules, 2005 for Procuring Orders for Foreign Company. An Indian firm, referred to as 'S', procures orders for a foreign company and provides a list of these orders to the foreign company. The foreign company then directly deals with the Indian company that ordered its products. 'S' receives a commission in US dollars, remitted through a bank. According to the Export of Services Rules, 2005, this arrangement is categorized as an export of services, where the recipient is located outside India. Therefore, 'S' may not be liable to pay service tax, subject to other case specifics.