Tds and service tax liability on commission paid

[ramesh bohra]

we are exporter and we have one agent who is booking order for us on commiission basis he is in dubai now we want to pay him commission .kindly inform us service tax and tds is liable on above commission and how we can take rebate

AI Summary

Exporters Debate Service Tax and TDS on Dubai Agent Commissions; Refund Possible for Goods Exports Under Specific Notifications. An exporter inquires about service tax and TDS on commission paid to an agent in Dubai. The consensus among respondents is that the commission is considered an import of service, thus subject to service tax in India. However, opinions differ on TDS applicability; one respondent cites a circular exempting TDS on foreign commissions. If the export involves goods, service tax can be refunded under specific notifications, requiring initial payment followed by a refund claim. The discussion highlights the need to pay service tax first and then apply for a refund, depending on the nature of the export.