Category - Commission paid outside India

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....ategory - Commission paid outside India<br> Query (Issue) Started By: - AJAY ARORA Dated:- 12-4-2006 Last Reply Date:- 14-4-2006 Service Tax<br>Got 3 Replies<br>Service Tax<br>This query is in responce to the reply given to Mr.Chander Prakash for his query dated 31st March: Commission services is covered under Business Auxiliary Services, which is covered in Section 65 (105)(zzb) of the Act. But, ....

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....as per draft of Taxation of Services (provided from Outside India and received in india) Rule 2006,the said Clause (zzb) is not covered. Therefore, pl. explain as to how the commission paid outside India shall be treated as taxable service within the preview of service tax Reply By Surender Gupta: The Reply: All the services provided outside India and received in India are covered in the Draft Ru....

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....les. all the services which are not covered in rule 3(2)(i) and 3(2)(ii) are covered in Rule 3(2)(iii) and provisions may be applied accordingly. Reply By AJAY ARORA: The Reply: Reply given by Mr. Surender Gupta refers to rule 3(2)(iii)of the draft rules regarding its applicability to commission payment outside India. But, the said rule specificaly applies in those cases where receipient is locate....

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....d in India. Therefore, should we presume that any export commission, given to foreign national or NRI residing outside India, are not covered in Service Tax? Reply By Surender Gupta: The Reply: Yes, such services should not be taxable in India if the receipient is not located in India.<br> Discussion Forum - Knowledge Sharing ....