https://www.taxtmi.com/caselaws?id=757204 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not applicable on commission payments to foreign agents. The appellant deducted commission from invoices to foreign buyers rather than making direct payments to commission agents, constituting a trade discount rather than a service transaction. The tribunal found no direct contractual relationship between appellant and foreign service providers, and no actual service existed. Relying on Laxmi Exports and Aquamarine Exports precedents, CESTAT set aside the demand order and allowed the appeal with consequential relief. en-us Wed, 14 Aug 2024 00:00:00 +0530 Sat, 17 Aug 2024 10:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757204 CESTAT Ahmedabad held that service tax under reverse charge mechanism was not applicable on commission payments to foreign agents. The appellant deducted commission from invoices to foreign buyers rather than making direct payments to commission agents, constituting a trade discount rather than a service transaction. The tribunal found no direct contractual relationship between appellant and foreign service providers, and no actual service existed. Relying on Laxmi Exports and Aquamarine Exports precedents, CESTAT set aside the demand order and allowed the appeal with consequential relief. Case-Laws Service Tax Wed, 14 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757204