Where the salary which is to be paid to the employee is fully variable and to be determined based on certain fixed perchantage of turnover and no fixed salary will be paid to him.
In this case, whether the service tax liability will be on the employee, if the total amount of variable salary to be received by him exceeds Rs. 10 Lacs in a financial year. Moreover, the employer is deducting the tax at source U/s. 194H of the Income Tax Act,1961.
Kindly advise on the service tax liability on the above.
Thanks,
CAclubindia
