Commission from foreign company - Service tax applicability

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Basically commission is taxable under Business Auxiliary Services. (i) One export order received by the X, Person outside India , from China to Africa . The company gets commission in foreign currency from X, for arranging the order. (ii) For identifying the party, Company pays commission to Y in foreign currency. Whether (i) comes under Export of Services and no Service tax applicable? Whether (ii) comes under Import of Services and Service tax is applicable under reverse method ? Thanks

AI Summary

Service Tax Query: Commissions in International Transactions Deemed Non-Taxable; Export/Import Status Uncertain. A query was raised regarding the applicability of service tax on commissions received and paid by a company involved in international transactions. The company receives a commission in foreign currency for facilitating an order between China and Africa and pays a commission in foreign currency to another party for identifying the client. The question was whether these transactions qualify as export or import of services, affecting their taxability. The response suggested that the service is neither an export nor import and is not taxable in India, though a detailed analysis might yield different conclusions.