Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Businesss auxiliary

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 Business auxiliary services:
I am a textile broker. I have taken a service tax number under the category of ‘Business Auxiliary Services’. The issue is that, my customers do not recognize this as a taxable service, even after my explaining them the same and are not ready to pay service tax. If I insist, it will result into losing my customers. Also, many of them pay me out of accounts, i.e. they keep payment made to me, out of the books. Currently, I have to pay all the tax out of my own pocket. Also, I am currently making loss as my GP margin is 5% and I have to pay Service Tax @ 10.3%. Also, raising of commission margin is not possible as it will be above market rate and will again result into losing business.
Can there be a possible solution whereat I can comply with Service tax provisions as well as my customers are retained?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

24 August 2011 you need to convenience your customer, take opinion from the department or service tax consultant regarding applicability of service tax and submit to customers

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