Income TAx & Service Tax

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CA Soumil (Querist)
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25 October 2010
In case of an advertisement Agency if the Total amt of ads including commission of an agent is say Rs.15,00,000/- where agent is required to pay to Times of India say Rs. 13,00,000/-.

Agent is fresher and is having nil turnover upto date.

Now the issue is on what amount service Tax is to be charged. If Service Tax is to be charged than what should be the bifurcation in the Invoice to be raised.

Secondly Client is supposed to deduct TDS on Rs.15,00,000/-. Whether agent is supposed to deduct TDS when he makes payment to Times of India?

Thirdly Times accepts amount in cash only. Will agent get deduction of Rs.13,00,000/- as it is made in cash.

Turnover for the purpose of sec. 44AB will be Rs. 15,00,000/- or Rs.2,00,000/- (Commission Amt.).

Please assist me soon

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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25 October 2010 Service tax is not payable for 2 lakhs.

No , Agent should not deduct the TDS on payment to TOI.

Times accepts cash only! why , what is the situation, Because in certain situtaion , it may be exempted to pay in cash.

Turover will be 2 lakhs u/s 44AB.

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CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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28 October 2010 Give bifurcation in invoice shwoing that commission amount separately. And the remining would carry the same answer as explained above reply

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