Service tax on commission on insurance agency


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Querist : Anonymous

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Querist : Anonymous (Querist)
12 May 2013 Dear Sir, One of my client have income from authorized service station of two whiles. My client paid service tax liabilities on these receipts. My client has a further income by commission on insurance service from united India limited. Is this commission also having a tax liabilities, thus my client had not claimed and paid any service tax on this commission? What is the legal provision? Service tax audit cell issue an notice regarding service tax on this commission after audit. Plz advice me.

With regards

Mukesh khandelwal

9828242065


27 June 2013 First of all you decide whther the client has exceeded the minimum limit of earning commission of 10L
If yes then he has to charge and pay the service tax on commission from both the businesses.
If your client has also paid service tax then deduct the same tax payable and tax paid and the difference is to be paid if it is payble


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