Commission paid in foreign country - service tax liability

[Asked by Guest]

Whether service tax is payable ( as Service receiver) on Commission payment abroad to overseas agent for procuring service orders in his country, say U.K. ( covered under Export of Services)??

AI Summary

Import of service: cross-border commission to overseas agents attracts service tax where statutory amendments render such transactions taxable.
Commission paid abroad to overseas agents for procuring service orders is characterized as an import of service and, following introduction of specific rules and an amendment to the charging provision, is liable to service tax; the export of services framework does not apply, and the earlier explanatory insertion into the service definition may not alone validly create a levy and remains subject to judicial scrutiny.