abatememt on chit commission

 

Dear Sir
 
One my client carrying chit business collects service tax as Misc Receipts @ 10% of chit commission and remitting service tax on 70% of chit commission (after claiming 30% abatement as per the notification dated 27-05-2008).
Is it correct as per the provisions of service Tax act?
 
Please clarify whether misc receipts of chit funds are taxable under service Tax Act?
Replies (1)

Already answered on another site.

Yes the misc receipt also would form of taxable services as the same is in realtion to the service. Further aincludible under the valuation rule 5 (1).

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