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Whether service tax is applicable

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Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Dear Sir,

One of my client is doing the business of selling cement packs to end users which were purchased from Cement Manufacturer directly. For the bulk purchases made, the trader is rewarded by the manufacturer in the name of commission after deduction of TDS.

Whether service tax is applicable to this Commission received by the trader.?

In case the person who is acting as an agent (who neither purchases nor sells)whether service tax applicable to this activity...?

CA Nagaraj Bhat

CA Nagaraj Bhat (Expert)
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29 March 2013 Your client is bookings order for manufacturer, this is an activity, commission is a consideration on which service tax is chargeable.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Dear Nagaraj Bhat,

My Client main business is to sell the Cement packs. for that he purchases from Manufacturer. Since he purchases many cement packs only they give commission. Whereas Service itself not defined clearly right..???

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