TaxTMI 
TaxTMI 
Effective date - foreign commission
18 May 2007 
2 Replies 
1478 Views Asked by
Service tax on foreign commission applicability disputed between amendment date and earlier explanatory provision.
Applicability of service tax on foreign commissions is disputed: one view treats the amendment to the charging provision (19.04.2006) as the operative effective date; another relies on the explanatory insertion to the taxable services definition (w.e.f. 16-06-2005) and earlier reverse charge introduction, which may lead the department to assert the earlier explanatory date as effective for taxing such commissions. (AI Summary)
Applicability of service tax on foreign commissions is disputed: one view treats the amendment to the charging provision (19.04.2006) as the operative effective date; another relies on the explanatory insertion to the taxable services definition (w.e.f. 16-06-2005) and earlier reverse charge introduction, which may lead the department to assert the earlier explanatory date as effective for taxing such commissions. (AI Summary)
we are manufacturer, exporter and paying foreign commission to agent in abroad for promoting export sales . what is effective date of applicability of Service tax on such commission