Import of services - BAS

[pardeep bisht]

COMMISSION RECEIVED FROM OVERSEAS PARTIES ARE TAXABLE IN SERVIVE TAX ACT? PLZ CONFIRM

[Rama Krishana]

Amount received for services rendered in India are taxable. But at the same time if it is for export, the same is exempt from service tax. It the nature of activity, receipt of amount in foreign exchange etc. that would enable anyone to decide the applicability of service tax.

AI Summary

Clarification on Service Tax: Commission from Overseas Parties Taxable Unless Deemed Export; Payment in Foreign Exchange Key. A query was raised regarding the applicability of service tax on commission received from overseas parties. The response clarified that services rendered in India are taxable under the Service Tax Act. However, services considered as exports are exempt from service tax. The determination depends on the nature of the activity and whether the payment is received in foreign exchange.