Regarding MLM Business
This query is : Resolved
Kamal Sharma
(Querist)
27 June 2009
Sir,
I have some confusion in respect of the service tax liability on my MLM business.
As the nature of this business is I am supposed to "retail" products of my parent company on person to person basis and build a network of people doing same. I am getting commission income from the parent company on my personal sales and group sales under me.
The amount of commission received by me from the parent company during a FY is approx. Rs. 3-4Lakhs.
My personal retail sales volume in a FY is not exceeding Rs. 1Lakh.
And for the group under me, I am not providing them any kind of service or assistance in creating their sales. They are getting all the support and assistance from the parent company.
Please guide me on this. Am I liable to pay service tax on my personal sales and/or on my group sales
OR
On the amount of commission I am getting from the parent company (Which is under the excemption limit of >10 Lakh.
I have some confusion in respect of the service tax liability on my MLM business.
As the nature of this business is I am supposed to "retail" products of my parent company on person to person basis and build a network of people doing same. I am getting commission income from the parent company on my personal sales and group sales under me.
The amount of commission received by me from the parent company during a FY is approx. Rs. 3-4Lakhs.
My personal retail sales volume in a FY is not exceeding Rs. 1Lakh.
And for the group under me, I am not providing them any kind of service or assistance in creating their sales. They are getting all the support and assistance from the parent company.
Please guide me on this. Am I liable to pay service tax on my personal sales and/or on my group sales
OR
On the amount of commission I am getting from the parent company (Which is under the excemption limit of >10 Lakh.
Madhukar N Hiregange
(Expert)
29 June 2009
If you are not provding any other taxable service then the 10 lakhs exemption would be available.
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