Liability and date of applicability of Service tax

[Guest]

X is a exporter company. It export its products to foreign buyers and after that it gives them commission on sales amount to buyers on invoiced price in foreign currency. Please advise : (a) Date from which service tax is applicable on exporter firm. (b) What is liablity of the firm if service tax is not paid. Joshil Jain

[Surender Gupta]

It is not clear from the query that who is the service provider? Whether he is in India or not?

AI Summary

Service tax applicability depends on the identity and territorial location of the service provider before liability can be fixed. Exporter pays commission to foreign buyers in foreign currency and asks when service tax applies and what liabilities arise for non-payment. The sole reply states applicability depends on who the service provider is and whether the provider is located in India, so the commencement of tax liability and consequences of non-payment cannot be determined without that factual clarification.