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

Taxability of cross-border commissions: commissions for services rendered in India are taxable, exported services in foreign exchange are exempt.
Commissions from overseas parties are taxable when they pertain to services rendered in India; receipts for exported services received in foreign exchange are exempt. Applicability depends on the nature and place of the activity and on receipt in foreign exchange, which together determine whether the transaction qualifies as an export of services and is therefore outside service tax liability.