Marketing for foreign company - export of services

[Asked by Guest]

An Indian Company doing marketing promotion in india for a US based company and procuring order from indian market and sending them to US Co. Against this services Indain Co. getting 10% commission for sale in Indian territory. Whether this will be treated as export of services.

AI Summary

Export of services depends on delivery and use outside India, convertible currency receipt, and agent independence.
Export treatment for marketing services hinges on meeting export conditions-service provided to a recipient outside India, delivered outside India, used outside India, and paid in convertible foreign currency-and on the agent relationship: a dependent agent whose principal's income is taxable in India will not qualify the service as export, whereas an independent agent whose principal is taxable abroad will support export classification.