Service Tax - Service by Foreign Commission Agents
GOVERNMENT has issued a new notification for the new regime exempting the Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.
The exemption is as is in excess of the service tax calculated on a value up to ten per cent of the free on board value of export goods for which the said specified service has been used, subject to the conditions specified.
In the previous version, the exemption was restricted to one percent of the free on board value of export goods. That was when the tax rate was 10%.
If you have understood so far, there are other complications to dissuade you from claiming the exemption.
Notification No. ; Dated June 29, 2012