St payable or not for bank dsa

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This query is : Resolved

Swarn Sethi (Querist)

31 December 2013 Sir

i have a business of finance & insurance behalf of some banks & insurance companies.
iam a authorised agent of banks ,
iam achieved my slabs & bank paid my commision on monthly basis after deduct TDS.

iam not raising any bills to customer so please confirm how iam calculate my service tax.
iam registered my ST as a banking & financial services in ST1.

Annu Agarwal

Annu Agarwal (Expert)

01 January 2014 Sir
As per the details provided,it appears as you are working as agents of banks.Therefore you are covered under Business auxilliary services and are liable to pay service tax.
Service tax shall be calculated at 12.36% of commission income.

Swarn Sethi

Swarn Sethi (Querist)

02 January 2014 Iam a direct selling agent of bank & NBFC & insurance companies & iam registered my service tax as a banking & financial services.

please confirm registeration is done under banking & financial service OR any other sector.

Annu Agarwal

Annu Agarwal (Expert)

02 January 2014 Dear Sir
As per the definition of Business Auxialliary Services (BAS)provided in section65(105)(zzb),it says BAS means
(ii)any service in relation to promoting or marketing of services provided by client.
Your case is covered under the above defination.You as service provider are promoting and marketing services provide by the client (i.e Banks,Insurance Companies)(Service Receiver).
Therefore you are providing services to the Bank and are working on a commission.
Hence you would be covered under BAS only.
For your reference please go through the following case law
:Ace Credits Vs CCE,Manglore

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