Service tax payment to agents

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2015 Respected Sir,

I am a DM accounts in chit fund company, we pay agency commission by deducting TDS to our agents on business targets some agents cross limit of commission income above the 10 lacs it is earned from different companies so they are liable for service tax but they claim that service tax amount from our company my question is it is our (company) responsibility to pay such service tax as per ST rules so please reply with example or notification if possible.

Thanks !

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 July 2015 Yes it is your responsibility to pay service tax along with commission claimed in invoice with ST registration No. If you go to AC restaurant the bill includes service tax which you are paying.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2015 can we claim/take set off for this service tax whenever we file st return

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 July 2015 Yes cenvat credit can be taken provided it is utilized for providing out put service.

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