Is service tax applicable on commission amount?

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2015 Dear All

Please Provide your Suggested answer For the Following

I(agent) Had Receive Printing Contract From A company and that contract was given to Some other (b Co) by Me .Now I am Taking Only Commission from the B&co Remaining all otherities given to B&co.

Can B&co liable to pay the service tax on commission charged Agent?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2015 You are liable to pay service tax on commission received if you are not a small service provider. The Co. will only reimburse the service tax paid by you.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2015 DEAR SIR,

Thanks......Please give me the regarding above case applicable Sec Number

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2015 Service tax applicable on all services other than that included in the negative list. Commission is not included in the negative list so service tax applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2015 Dear Sir,

Here in the above case I am not providing Any services to A&co ,Entire Services are providing by B&co.

I am only Receiving Commission from B&co.There is no service Regarding my Commission

Am I correct /Not?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2015 You said you are agent(see the query) facilitated B&Co. to receive the order, it is a service for which you are receiving commission.