Hello everyone,
one of my client (proprietor) is doing ticketing business for books tickets for hotel/railway and air etc.
He has agents as his clients who referes clients to him for commission.
My client receives bill from the company though whom he books tickets. company shows commission paid to my client in the bill and charges service tax on commission amount @ 12.36% and from the total amount TDS @ 10% on commission is deducted and net amount is payable by my client.
My client shown amount paid to agent as commission in the invoice but he collects service TAx @ 1.24% on the basic ticket fare.
My client is newely registered under service tax and if this practice is continued then my client will always get refund since service tax paid by him is more than what he actually collects and i also think chargeing 1.24% on basic fare is not proper.
CAclubindia
