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?
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. (AI Summary)
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