TaxTMI 
TaxTMI 
Please let me know the current provisions relating to the service tax liability on commission paid to an agent abroad for procuring orders to be exported from India. (Garment Industry)
Commission to Foreing Agent
04 Aug 2011 
2 Replies 
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Service tax on commission to foreign agents: exemption possible under notification, otherwise taxable under statutory service tax provisions.
Service tax applies to commission paid to an agent abroad as a taxable business auxiliary service unless an exemption under a specified notification is available; that exemption commonly requires that commission be paid after export rather than in advance and compliance with the notification's conditions. (AI Summary)
Service tax applies to commission paid to an agent abroad as a taxable business auxiliary service unless an exemption under a specified notification is available; that exemption commonly requires that commission be paid after export rather than in advance and compliance with the notification's conditions. (AI Summary)