Iam a commission agent representing Chinese companies for marketing their products to Indian companies. Will service tax be applicable on the commission I received from my Chinese suppliers? Likewise I also market some Indian suppliers products to Chinese buyers, and commission received from such Indian suppliers also attracts service tax ? Is there a way in which I can find a way out of this loss of income on both sides??
2007-02-20 02:50:42 · 4 answers · asked by Atuls 1 in Business & Finance ➔ Taxes ➔ India
Hi Atul......See if You are earning in foreign Exchange and all the services rendred outside India...is totally Tax free from Service tax as well as sales Tax.....and in income tax certail percentage is expemt.....and For commission received from indian companies service tax is applicabe @ 12.24% and also come under Business Income under Income tax Act 1961. You cam mail detail equiry on lkc100@rediffmail.com
corporate boy
2007-02-20 23:05:16 · answer #1 · answered by corporate_boy2002 2 · 0⤊ 0⤋
As you say you are a "commission agent" providing service to foreign company. There is exemption of Rs.4 lakhs, but if you cross the limit of 4 lakhs then you have to get the registration under S.Tax i.e. under Central Excise Dept. and you have to pay the S.Tax @12% & 2% Edu.Cess. on S.Tax. Don't worry you can recover it from your customers on the basis of your Registration No., & you can calculate it in your bill amount & then you have to pay it in form of TR-6 Challan (yellow). The amount received in month of February you have to file it before 5th March & then you have to file the returns Six monthy.
I hope I have clarified the matter.
JITENDRA.
2007-02-24 01:19:29 · answer #2 · answered by jitu.jeetu 2 · 0⤊ 0⤋
The exemption from service tax is admissible only in those cases where the service is considered as Export of service under Export of services Rules.
The service provided by you is covered under notified taxable service "Business Auxiliary Service".Only when the service is rendered outside India; the service is treated as Export of service in such cases.Since the service is being rendered in India; you are liable to pay service tax.However, you are entitled to small scale exemption if your commission is below Rs 4 lakh
2007-02-21 04:53:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
no
2007-02-20 03:13:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋