Service on sales commission received

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Yogesh Babu (Querist)

01 October 2010 Dear Friends,

This is yogesh, one of client having a following issue with service tax department, so please suggest..

The client is an authorised distributor of SUN DIRECT DTH and they receive two types of receipts through distrubutionship service 1) Contract receipts 2) Commission Receipts
Contract receipts received on the basis of number of instalations they did and they have to raise an invoice with applicable service tax.
Commission receipts on the basis of order by the client, which one is not liable to service tax..
But the service tax department has raised an query regarding the commission receipts and they insist us to pay service tax applicable rate..
My question is
1) is the commission receipts is liable to service tax?
2) or exempte?
3) The SUN Direct has issued two types of TDS for Contract and Commission receipts.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

03 October 2010 What is contract??? what is the sertvice provided???

Commission agent is liable under busienss auxiliary service. Exemption upoto 10 lakhs is available for the first year provided pr yr taxable service not exceeded the exemption.

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