Service Tax on payment to commission agent in abroad

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Hi...

My company has made an export through a commission agent. The commission agent is in abroad. I just wanted to know that whether service tax will be leviable or not. I am not registered for service tax.

Please reply...

AI Summary

Service Tax Applicability on Foreign Commission Agents for Exports: Section 66A Debate Continues with Ongoing Supreme Court Case A company inquired about the applicability of service tax on payments made to a foreign commission agent for exports. Responses varied, with some stating service tax is not required as the service is provided outside India, referencing the Taxation of Services Rules, 2006. Others mentioned that under Section 66A, the service could be deemed taxable if the service receiver is in India, though exemptions might apply under Notification No. 18/2009-ST, especially if the commission is below 1% of the FOB value. There are ongoing disputes on this matter, including a case pending with the Supreme Court.