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party dont raised service tax

This query is : Resolved 

11 April 2009 If a party raises commission bill without raising service tax on it, whether the company making payment is liable to deduct service tax and pay to the authority.

11 April 2009 No, service tax bill to be raised by commission agent after crossing limit of service tax.its not libility of payer of exps.

11 April 2009 Yes. but subjected to TDS Rule. The rule for TDS applicability and Service Tax is different.


Regards,

11 April 2009 pl tell me whether a company making payment of commission say 10 lacs but the commission agent has not charged service tax , is there any liability on company in respect of service tax?

11 April 2009 You have to deduct tds on the bill amount. Here since one bill itself is crossing the basic limit you can ask your commission agent whether the bill is correct in all respects. If they say yes then you can deduct tds for the bill itself and forget about the service tax.

12 April 2009 Service tax in the situation is the liability of the commission agent. The service receiver is not liable in any manner.


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