Dear Members,
Would like to know from the forum members the liability of service tax in the below mentioned transcation:
'A' is a partnership company that is paying commission to 'B' 'C' 'D' & 'E' which are its commission agents for four zones . All agents B,C,D & E are proprietory/ individual/ partnership firm and their yearly commission received is well under Rs. 10.00 lacs from all sources.
'A' is paying approx Rs. 6-8 lacs as commission to each agent totalling about Rs. 31 lacs for the financial year.
My question is : Is 'A' company paying commission to agents liable to pay any sercive tax as the total commission outgo is about 31 lacs though all the receiving agents fall with in the 10 lakh limit individually
would highly appreciate the members clarification on the above transcation
TIA
CAclubindia
