Applicability of Service Tax Act for a commission agent located outside India?



I am Information Technology service provider located in India and my company is offering services to US clients. I am getting projects through Elance ( a software market place for getting projects through a bidding process) and they deduct a certain commission in US$ for their services rendered to us. Does the commission paid attract Service Tax in India? Kindly advice.

Applicability of Service Tax Act for a commission agent located outside India?
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2 Replies to “Applicability of Service Tax Act for a commission agent located outside India?”


  1. The Service provided by elance falls under the taxable service category of Business Auxiliary service. As the service provider is located in a foreign country, you are liable to pay the tax . So you are advised to register with the service tax department and pay service tax. For further information visit http://www.servicetax.weebly.com
    Please read details given under the heading import of service and import of service rules under the head other rules in the website. Under import of service rules location of service provider in a foreign country is sufficient to attract import of service rules for Business auxiliary service. If elance has an office in India, it is their headache to register and pay service tax and you need not bother.





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