Rate of tax on commission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2014 my company's purchase of the computer device is 6700 and i have sold that product for rs 7700 the 1000 is the margin out of which rs 900 is commission to me.Is there any tax will be levied to me by my company?if yes at what %?

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2014 My company is saying that 30% of the commission will be charged as income tax to the company.so he will deduct 30% of 900=270 from my commission is it true that the company have to pay income tax on this commission and can deduct from my commission?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Is Tax Applicable on Commission Income in 2014?

✔️ Yes. Service Tax is applicable on commission income.
Service Tax Rate (as of July 2014): 12.36%
If your commission exceeds ₹10 lakhs in a financial year → You are liable to register and charge service tax.
If your commission income is less than ₹10 lakhs/year → You are exempt under the small service provider exemption.

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