16 April 2012
Dear Sir, One of my client has earned a commission income of more than 10Lacs(Rs.13Lacs) in financial year 2011-12. He is enjoying the status of SSI till last year. As their commission income exceeds 9Lacs we took the Service tax registration. Now i am not clear that the liability of service tax is on whole 13Lacs or on a difference 3lacs(13-10) in this year.
Please help me out as soon as possible. I am waiting for your response Thanks in Advance
16 April 2012
For the year 2011-12, service tax liability is only on 3 lacs, from the year 2012-13, the entire commission amount will be chargeable to service tax. However, you have not mentioned one basis issue- how much service tax has been collected from Service receiver. If your client has collected Service tax on entire 13 lacs, then liability will be discharged on entire amount.
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