service tax on services provided to abroad (both seller and buyer) commissions received in india

[bharatheesha venkatesha]

 

I am broker, we will arrange sellers to our buyers in foreign (both parties are from foreign). after sucessfull completing transactions, we will receive commission in india.  do we require to register in Service tax department and pay service tax ?

[YAGAY andSUN]

If you receive commission in foreign remittance, then, it will amount to export of services.  Yes, you would have to get yourself registered with Service Tax Department.

Since, such transactions would be termed as export of services, you will be not liable to pay service tax on such activities.

Further, you may seek refund on the input services after following prescribed procedures.

 

AI Summary

Export of services: commission received in India treated as export; registration required but no service tax payable. Commissions received in India for brokering transactions between two foreign parties are characterised as export of services, not liable to service tax; however, the service provider must register with the Service Tax Department and may seek refund or credit on input services by following prescribed procedures and documentation.