Effective date of applicability of service on commission paid to overseas agent

[JOSHIL JAIN]

One of my client who is exporter of textile products receive a notice from the department regarding payment of service tax on 'commission paid to overseas agents' w.e.f. 09.07.2004. I would like to know the date of liablity from when exporters are liable to pay service tax on 'commission paid to overseas agents'.

AI Summary

Clarification on Service Tax Liability for Overseas Agent Commissions Under Section 66A: Payments Before April 18, 2006, Unsustainable. An exporter of textile products received a notice regarding the payment of service tax on commissions paid to overseas agents, effective from July 9, 2004. The query seeks clarification on the liability date for such payments. The response indicates that this service falls under the Import of Services as per Section 66A of the Act, which became effective on April 18, 2006. Thus, any demand for service tax payment prior to this date is deemed unsustainable.