2018 (10) TMI 900

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....ustomers in India. A Service Agreement dated 18th August 2010 was entered into between the Appellant and its Parent Company. The Appellants are providing various services categorised under "Business Auxiliary Services" to their Parent Company, such as collecting of payments from their customers on behalf of the Parent Company, co-coordinating with Courier Company, customer support service etc. and for the said services they are being paid service charges in the form of commission by their Parent Company as per Clause 4 of the service agreement. The said Clause 4 of the service agreement is extracted as under: "Clause 4. Compensation for Services The Company shall pay to Import Express compensation for the services as follows: The serv....

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....ant for the Appellant and Learned Authorised Representative for the Revenue and perused the record. According to the Learned Chartered Accountant, the appellant recovered consideration of sale of goods from local customers of the Parent Company and thereafter remits the net consideration to its Parent Company after deducting their service charges. He further submitted that had the entire amount received from the customer of Parent Company been remitted to Parent Company, the service charges due to Appellants in foreign exchange would have been paid by Parent Company from abroad. But instead of going by this lengthy process the Appellant paid only the net consideration in foreign exchange to the Parent Company and therefore in a way the App....

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....re exempted from liability to service tax. 5. The Learned Authorised Representative on behalf of the Revenue reiterates the finding in the impugned order and submitted that the appeal filed by the Appellant deserves to be dismissed. 6. According to me, since out of the total payment to be made by the Appellant in India to its Parent Company at Singapore, the same was reduced to the extent of his service charges/commission and the remaining amount was remitted to the foreign Parent Company in foreign exchange, and since such Indian Rupees was obtained in lieu of foreign exchange, therefore the same will be deemed to be convertible exchange. The Hon'ble Supreme Court in the matter of J. B. Boda & Co. Pvt. Ltd. Vs. CBDT reported in 2002-....