Deduction st from commission amount

MY PROBLEM IS AS FOLLOWS:

 

AN AUTHORIZED CAR SHOWROOM GIVE CASE (CUSTOMER REQUIRED LOAN FOR BUYING CAR FROM THE SHOWROOM) TO A BANK LIKE ABC BANK LTD.

IN THAT SHOWROOM HAVE LOTS OF SALES EXEXUTIVE WHO MAKING RELATION WITH CUSTOMER  FOR BUYING CAR FROM SHOWROOM BY FINANCE PROCEDURE (THROUGH CAR FINANCE).

 

SHOWROOM PAID CERTAIN COMMISSION TO SALES EXE FROM THAT COMMISSION WHICH THEY EARNED FROM THAT BANK (FOR DISBURSE FINANCE FROM THAT BANK)

 

HERE ONE POINT CLEAR THAT SHOWROOM HAVE TO PAY SEVICE TAX AS THEY PRIVIDE SERVICE TO BANK (FOR LOAN ).

 

NOW, MY QUESTATION IS THAT, IS IT LIABLE TO DEDUCT SERVICE TAX FROM THAT COMMISSION WHICH SHOWROOM PAID TO HIS SALES EXECUTIVE. 

AS PER PROVISSION TDS IS APPLICABLE BUT SERVICE TAX IS APPLICABLE THE ABOVE CASE?

 

 

Replies (2)

if any kind of service is provided by employee to employer in course of employment, then its not covered in the definition of service

in your case sales executive are employees hence service provided are not taxable

thank you.

I have little more quarry is that,

 

suppose take a case that two company A Ltd and B Ltd. A Ltd provde servicses (not in negeative list) to B Ltd and doing bill with add services tax. (Net bil amount Rs. 100/-  with ST bill is Rs. 112.36)

A Ltd paid to CBEC Rs. 12.36.

for providing that services by A Ltd have some individuals and paid commission after deduction of TDS(with them have no employer emplyee relation). 

 

in that case if  A Ltd failed to collect or charge of ST (calculation will be , ST = 100 * 12.36/112.36)

is there any provision to deduct ST from those Indicidual's commission for paid to CBEC?

 

 

 

 

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