Commission to foreign company - import of services under reverse method
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Basically commission is taxable under Business Auxiliary Services. Whether Commission paid to foreign party comes under import of services under reverse method?
Foreign Company Commission: Is It Taxable Under Reverse Charge Mechanism? Service Recipient Pays if Taxable in India. A query was raised about whether a commission paid to a foreign company falls under the import of services and is taxable under the reverse charge mechanism. The response clarified that if the commission is taxable in India, the service recipient is responsible for paying the service tax. This discussion is part of a knowledge-sharing forum focused on service tax issues. (AI Summary)