Service tax on commission

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Buying Agent (Indian Company) gets mandate from overseas company for importing certain product.Buying Agent Identifies a suitable Indian exporter.Direct order on Exporter is arrnged.Buying agent helps exporter in product development,control and monitors quality on behalf of Importer.On completion of export gets commission for services performed from overseas importer.Is a buying agent indian company liable to pay service tax on commission received in convertable foreign exchange.Such services although performed from India has been used outside India(i.e.) by Importer.

AI Summary

Indian Buying Agent's Commission in Forex: Is It Subject to Service Tax for Exported Services? A buying agent, an Indian company, receives a commission from an overseas importer for services related to product development and quality control for exports. The query is whether the commission received in convertible foreign exchange is subject to service tax in India, given that the services are used outside India. One respondent suggests that it appears to be an export of services, which may attract service tax, depending on the contract's specifics. Another respondent asserts that the service is exported outside India and is not liable for service tax.