Professional Documents
Culture Documents
in
http://taxguru.in/service-tax/service-tax-oncommission-agent-service-importexport-goods.html
However for commission services provided by agent located in India to person located outside India for Import of
Goods in India is taxable service from 1st October 2014, which was out of purview of service tax upto 30 th
September 2014.
Summarized position ofTaxation of commission service on Import-Export of goods, under erstwhile and new
provision is explained as under:
Type of
Commission
Service
Location
of
Service
Provider
Type of
Commission
Service
Location
of
Service
Provider
(A)Commission
Paid for
facilitating sale of
goods exported.
Outside
India
In India
Notification No 14/2014 ST dt 11 th
July 2014 amended Rule 9 of POP
Rules 2012 by amending definition
of Intermediary.
(B)Commission
Received for
facilitating sale of
goods imported
In India
In India
Taxable
Taxable
In India
Outside
India
Taxable
Taxable
In India
In India
With the changes in these provisions, the position is now exactly reversed, that is, what was taxable earlier now
it will be not be taxable and vice-varsa
In such transitionally period of changes in position of service tax on commission agent dealing in goods, care is
to be taken for transaction executed, considering Place of Provision Service Rules 2012 and Point of Taxation
Rules 2011.
(The Author is member of ICAI. He can be reached at munotswapnil@gmail.com)