Service tax on commission income

This query is : Resolved

Neha Shah (Querist)
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13 March 2013 I have following doubts:

1. Is service tax applicable on commission income (commission on Sale of Fabric)

2. Income crossed 10 lacs last year, but this year it is expected to be low. So should service tax registration be taken?

3. If Income last year was 13 lacs then how much service tax to pay this year?

Please help to solve my doubt.

Ankit

Ankit (Expert)
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13 March 2013 Dear Neha,

According to me

1. Yes Service Tax is Payable on the commission income
2. ST registration is required if the turnover exceeds rs 9,00,000. since in your case the turnover exceeded 10,00,000, you need to register for ST
3. Small service provider exemption is available only if in the previous year the turnver did not exceed 10,00,000. in your case since it was 13,00,000 you will not get the exemption and are required to pay ST on the full amount of the turnover of the current year

- Ankit

Message likes : 1 times

VSRM KASYAPA

VSRM KASYAPA (Expert)
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31 August 2019 Sale of fabric attracts, if any, excise duty, if he is a manufacturer. In the case of trader, there is no service tax at all as per Negative list.

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