Commission to foreign company - import of services under reverse method

[Guest]

Basically commission is taxable under Business Auxiliary Services. Whether Commission paid to foreign party comes under import of services under reverse method?

[Guest]

Yes, if such commission is taxable in India, the service recipient is liable to pay service tax.

AI Summary

Reverse charge on imported services: recipient liable to pay service tax when commission is taxable in India. If commission paid to a foreign company is a taxable service in India classified as Business Auxiliary Services, the Indian service recipient is liable to pay service tax under the reverse charge mechanism; mere cross border payment does not by itself create liability unless the service is taxable in India.