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Service tax applicability on commission paid abroad, Service Tax

Issue Id: - 1437
Dated: 22-8-2009
By:- Jatinder Maan

Service tax applicability on commission paid abroad


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please confirm if service tax is applicable on commisions paid to parties whoes office are not in in India.

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1 Dated: 22-8-2009
By:- Mukesh Kumar

Yes, it is treated as Import of Service. But as per new scheme of service tax, if the same is used for export of service, you may claim exemption directly. See notification no. 18/2009


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