TaxTMI 
TaxTMI 
Export of Services - Commission from foreign country
25 Apr 2006 
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Export of services: commission earned for foreign principals may be outside service tax if recipient is located abroad.
An Indian firm procuring orders for a foreign principal and receiving commission in foreign currency falls within the export of services category where the recipient of services is located outside India; subject to other conditions under the Export of Services Rules, 2005, such commission receipts may not attract service tax. (AI Summary)
An Indian firm procuring orders for a foreign principal and receiving commission in foreign currency falls within the export of services category where the recipient of services is located outside India; subject to other conditions under the Export of Services Rules, 2005, such commission receipts may not attract service tax. (AI Summary)
'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.