Commission received in USD - ST payable?

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..... Commission received in USD - ST payable?
Query (Issue) Started By: - ANAND SHEMBEKAR Dated:- 13-10-2012 Last Reply Date:- 14-10-2012 Service Tax
Got 2 Replies
Service Tax
Dear All learned colleagues, My client based at Mumbai is providing services in the nature of sourcing of material to the Company manufacturing engineering parts at Baroda - Gujrat. This baroda based company is a br .....

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..... anch of a Company based at Hongkong. Client received the work order from Hongkong for sourcing of materials for Indian based branch at baroda , client issues bills in USD to Hongkong based company and also received the commission of USD 10000 from Hongkong . The sourcing of materials and issue of invoice and receipts of payments takes place during the period of 08-August-2012 to 25-Sept-2012. Wh .....

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..... ether this is taxable from service tax point of view. I expect the views of learned colleagues . Thanks ANAND SHEMBEKAR CELL 91-9421187122 Reply By Seetharaman K C: The Reply: Here the place of provision of services rules 2012 is in the taxable territory as both the service receiver and the service provider are situated in the Taxable territory as per Rule 8 of the place of provision of servi .....

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..... ces rules. Hence the activity is taxable and as far as the transaction with the foregn company is concerned it would ulimately pass on the cost of sourcing such materials to its Indian branch which is but an accounting entry.The crux of the issue is that the service is being provided in the taxable teritory and is thus taxable, hence commission received would be subject to service tax. Reply By A .....

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..... NAND SHEMBEKAR: The Reply: Thank you very much CA Mr. Seetharaman K C for your valuable advice . Thanks ANAND SHEMBEKAR CELL 9421187122
Discussion Forum - Knowledge Sharing .....

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