Is service tax payable on brokerage/commission?

Queries 483 views 1 replies

Dear Sirs,

I am looking out to start my own business as a broker/commission agent to certain serviced apartments/hotels.

My income will be based on the number of confirmed room bookings as a certain percentage of the rent collected through my referrals.

None of these properties will be paying me a salary or any other fixed income whatsoever.

Now, my question is - will I have to pay service tax on such income received and if so under what category - "Business Auxiliary Service" or "Travel Agent" or any other category? And what is the percentage?

Please help.

Thanks.

Prakkash Loganaathan.

Replies (1)
Sir, You are service provided under Breakage & Commission basis and also your tax liability to be created in same head. You have to paid liability @ 12.36% (encl. ed. Cess & SH Ed.), if you taken any benefit with any notification then your liability may be reduced but the terms and condition will be applicable.


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