Hi All,
I am planning to start an online service marketplace, something like https://fiverr.com/
where sellers can offer some services, buyers can buy them from the site and I get some commision on each purchase. So basically act as an agent, say buyer pays Rs. 100, I keep Rs. 10 as commision and pass the rest (Rs. 90) to the seller.
First of all I would like to understand whether I am liable to pay service tax for this (or am I responsible to collect service tax on behalf of buyer or seller). If yes, would my service tax liability be on Rs. 10 (my commision) or on Rs. 100 (transaction amount)
Then there come 3 scenarios
1. Buyer is outside india, seller is in India
2. Buyer is in India, seller is outside India
3. Both Buyer and seller are outside India
In these scenarios what happens to service tax liability, whether it is payable or not, and if yes who needs to pay it.
Look forward to expert advice :)
Regards,
S Singh
CAclubindia
