Service Tax On Commission Paid To Foreign Commission Agents Is Payable Under RCM From 18.04.2006: Bangalore CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the payment made to foreign commission agents for services rendered outside India does not attract service tax under RCM. The tribunal emphasized that the commission paid abroad does not constitute consideration for any taxable service provided in India. Therefore, the liability to pay service tax under RCM does not arise in such transactions. This decision provides clarity on the tax treatment of payments to foreign agents for services performed outside India under the Service Tax regime.