Bus owners under service tax

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This query is : Resolved

G S Pradeep (Querist)

11 September 2014 Dear All,

If Mr.A have fleet of buss and he have many agents in city who book ticket on behalf of Mr.A and give money to Mr.A after deducting their commission.

Now my doubt is all agents should get register under service tax since they collect service tax on behalf of Mr.A. Mr.A cannot treat all agents office as his branch offices. It will be risky for Mr.A. Since agents keep changing regularly.

Please suggest what is the best solution to avoid future problem.

Is Mr.A should give some certificate to all agents or any documents to be maintained.

Thanks in advance.

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 September 2014 Service tax can be arise on commission received by agent.

Message likes : 1 times

G S Pradeep

G S Pradeep (Querist)

11 September 2014 Dear Arun,

If commission not exceed the exempted limit. Is still they liable to register under service tax. Can they collect service tax amount on behalf of Bus owners and just pay.

Any records to be maintained to show ST officers.

Thanks for the reply.

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 September 2014 No need to pay service tax if SSI exemption not exceeded.

Message likes : 1 times

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