Applicability of service tax on marketing

This query is : Open

vishnuvardhana reddy (Querist)
Follow

14 June 2016 We are marketing company .. We do marketing of plots in developed layouts .. Developers give plots to us @ 500 per square feet to us and we can sell those to customer at any price more than 500 i .e 600 or 700 per square feet .. Or more . The diff of Rs 100 or 200 ( 600-500)(700-500) is my commission . Sale price is not fixed ,it depends on customer . In this situation service tax is applicable or not . If not how we can show this in books .. Please guide me

Message likes : 1 times

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

14 June 2016 Service tax applicable on this commission.

vishnuvardhana reddy

vishnuvardhana reddy (Querist)
Follow

14 June 2016 Seetharaman Garu please help me for what amt I need to collect service tax and is there any exemptions or abatements available for this

vishnuvardhana reddy

vishnuvardhana reddy (Querist)
Follow

14 June 2016 Seetharaman Garu . Please help me that at what amt I need to collect service tax and is there any exemptions and abatements available

vishnuvardhana reddy

vishnuvardhana reddy (Querist)
Follow

14 June 2016 Is there any exemptions or abatements available

Sanjeeve Narayanan R

Sanjeeve Narayanan R (Expert)
Follow

15 June 2016 you need to collect service tax on commission amount and paid to govt after adjusting input if any.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 June 2016 No abatement available. If your commission earned per year exceeds 10 lacs you are liable for service tax. You can't collect service tax separately from your customers. Hence back work the service tax on inclusive basis and pay service tax.

vishnuvardhana reddy

vishnuvardhana reddy (Querist)
Follow

16 June 2016 Is there any other method for showing this transaction in Books for reducing the burden of service tax payment on me , which I need to pay from my commission

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now