Sales commission

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Naresh C A (Querist)
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30 January 2015 I am a Sales commision agent of a Pharmacutical Company, I am getting Rs. 25 lakhs as sales commsion from my principal.
out of this amount Rs. 5Lakhs is my income and rest of Rs.20Lakhs is paid to other representitives of company.
1.Do i Required to pay Service tax or not?
2. Should I collect Service tax from my principal?

PUNEET GOYAL

PUNEET GOYAL (Expert)
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30 January 2015 Yes you are required to collect service tax from your principal on total commission amount i.e. 25 lakh and deposit it to Govt.

I hope above is sufficed. Your valuable feedback in respect of same would be highly appreciated.

(Disclaimer: The above reply has been prepared as per various provisions of Finance Act 1994, notifications issued thereunder and relevant case laws etc. The reply may not be entirely correct for reader to reader due to different interpretations by different readers. The readers are advised to take into the consideration the prevailing legal position before acting on any of the comments in this reply. We shall not be responsible for any loss caused based on this interpretation.)

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