Service tax applicability on commission paid by foreign company

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A Pvt company registered in India receives commission from foreign principals for orders executed in India. The other facts are: a.The foreign principal does not have any office in India. b. the indian company has no authority to sign any agreemnt with the customer on behalf of the foreingn principal. c. service is delivered outside india as the principal is situated outside india. d. money is received from aborad in foreign exchange. i want to know whether service tax is to be paid by the indian company on the commission received from abroad e.

AI Summary

Service Tax Applicability on Commissions for Indian Companies Paid by Foreign Principals: Conflicting Views on Tax Liability An Indian private company receives commission from foreign principals for orders executed in India. The foreign principal lacks an office in India, and the Indian company cannot sign agreements on the principal's behalf. The commission is paid in foreign exchange. One response suggests that service tax may not apply if the service is used outside India, but advises reviewing documentation to confirm this. Another response asserts that service tax is applicable because the company is registered in India, regardless of where contracts are made.