ONLINE COMMODITY TRADING

Dear Friends,

Requested answers for the following:

1.  If one is undertaking online commodities trading on behalf of another, and he receives part of the profits earned from the same, as his commission or compensation what ever it may be called, the queries arise:

if on agreement basis between two then it would invite new AOP identity. 

if bills are submitted for commission or profession charges, then service tax payable. 

a)  Will this be taken as a Service being provided to another, and will  Service Tax be applicable for this transaction?

b)  Elsewhere it was mentioned that commissions received are exempt from Service Tax, is it correct?

commision is part of business auxilary services.

c)  How will this income be taxed by income tax laws, as a general income with normal slabs or otherwise?

normal slabs, to be added with taxable income. 

Thanks,