TaxTMI 
TaxTMI 
Whether the income earned during High Seas Sales of goods are taxable under Business Auxiliary Service( procurement of inputrs for clients) ?
Service Tax on High Seas Sales
08 Mar 2011 
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Service Tax on High Seas Sales: commission-based agency attracts levy, pure principal-to-principal sales do not.
Taxability of income from high seas sales depends on the intermediary's role: if an intermediary acts as an agent earning commission or brokerage and effects sale or purchase for a principal, the activity is taxable as a Business Auxiliary Service; if the transaction is a pure sale between two principals at arm's length with no agency commission, it is not taxable as such a service. (AI Summary)
Taxability of income from high seas sales depends on the intermediary's role: if an intermediary acts as an agent earning commission or brokerage and effects sale or purchase for a principal, the activity is taxable as a Business Auxiliary Service; if the transaction is a pure sale between two principals at arm's length with no agency commission, it is not taxable as such a service. (AI Summary)