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Commision received

vipin kumar (Accountant) (39 Points)

11 August 2016

Dear Concern, This is Vipin Kumar here, and i have query regarding Service tax... I am working in a shipping company & we have received commision from Xyz hotel on booking of Rooms in a perticular period after deduction of TDS So can we have to deposit service tax on received amount ? and should we have raise invoice for this. Kindly advice me complete process

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4 Replies

Gagan Deep Singh (CHARTERED ACCOUNTANT) (1190 Points)
Replied 11 August 2016

You have to raise an invoice and deposit the service tax in case value of services during the previous financial year exceeds Rs 10 Lac. In case it was below Rs 10 Lac during the previous FY then you need to see whether during the current FY it has increased the sum of Rs 10 Lac. If it is, then you need to pay the service tax and raise an invoice.

Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 11 August 2016

Agree with the above view. For the purpise of calulating the value of Rs. 10 lakhs even the value of tds needs to be considered as service tax is liable on the gross amount charged.