Service Tax on Indent Commission: Indian Firm's Services Deemed Exports, Tax Demand Overturned Under Export Rules.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The case deals with the levy of service tax on 'indent commission' received by an Indian company from its overseas holding company for providing business auxiliary services. The judgments of the Delhi High Court in Verizon Communication India Pvt. Ltd. and the Larger Bench of CESTAT in Paul Merchants Limited were analyzed. It was observed that the Indian company provided necessary details of customers in India to foreign steel mills, enabling them to execute contracts directly with Indian customers. The Indian company satisfied the conditions of the Export of Service Rules, 2005, as payments were received in convertible foreign exchange. Applying the principles laid down in the cited cases, it was held that the services rendered by the appe.........