Export Commission Not Subject to Service Tax Under RCM: CESTAT Ahmedabad

Suryanarayan Synthetics P Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench, recently issued a ruling in the case of Suryanarayan Synthetics P Limited against the Commissioner of Central Excise & ST. The Tribunal held that amounts labeled as “commission” and deducted from export invoices by a merchant exporter are in fact trade discounts and are not liable to service tax under the reverse charge mechanism. This decision provides clarity for exporters paying foreign “commissio...