Clarification required

Effective 1st July 2012 all services have been brought in ST net (except those in negative list). Service Tax is to collected from your clients and paid, it is not to be paid out of your commission.

You shall invoice your customers - Banks& NBFC's and collect the same, on issue of invoice you will have to pay the same by the 5th of next month.

Prasad 9845298827

Originally posted by : C NAGOJEE RAO
	Dear Sir, Kindly clarify my queries. Am the channel partner of mulitple banks and promoting all kinds of loans. I source the clients and get loan through banks/nbfcs. End of each month banks will be paying me the commission / payouts for the business done deducting 10% tds in my current account. I hold a proprietor current account and have service tax number. This year from apr to till date my commission has crossed more than 10L. Do i have to pay the service tax? Anyway i will be paying the income tax filing at end of year at 30% slab. but still i have to pay the service tax? Kindly clarify. Regards.

Service tax would be applicable under Business Auxilary Services.. just raise invoice on bank and get reimbursement from the... Bank shall claim service tax paid to you as input servics and will adjust the same while discharging their liaiblities on output services.