We know that There is reverse charge on Service taken from outside India and the Service Receiver who is Indian Party pays Service tax
Such service may be taken by exporter from foreign commission agent and the exporter had to pay commission on the same
However no Service tax is payable on same as per Notification No. 42/2012-ST dated 29.06.2012
Notification No. 42/2012-ST dated 29.06.2012
Service provided by a foreign commission agent who causes sale of goods abroad is exempt
Exemption is limited to the service tax calculated on a value of 10% of the FOB value of export goods for which the said service has been used
With effect from 1.3.2015
Notification No 42/2012 rescinded
However,service remain non taxable as place of providing service is non taxable
Note:-
As per Amendment in Place of Provision of Services Rules, 2012 is
Since service provider is outside country, service is deemed to be provided at non taxable territory and hence non taxable
These rules are included in CA Final Syllabus
