Service Tax on payment to commission agent in abroad

[Asked by Guest]

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

Import of service: recipient may be liable for service tax on foreign commission unless an export commission exemption applies.
Whether payment to a foreign commission agent is taxable depends on place of receipt and supplier establishment: if the service is not received in India it is not taxable; if treated as import of service the Indian recipient may be liable unless the foreign provider meets the establishment criteria, and a specific exemption for small commission on exports removes tax liability where applicable, otherwise the recipient may pay tax and seek input credit or refund.