Check sibling questions



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Notification No 42/2012 rescinded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



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



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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.