Service tax applicability

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

 

Replies (2)

Once the negative list in place, I am of the opinion that service tax as all exclusion is not applicable to your line of business, however the ceiling of 10L is avalaible, hence if your services income does not cross 10L it is fine.

 

regarding the various services your quoting by location of buyer and seller would not apply as the serivce is provided in India, or rather your location/ office is in India

Thanks for your reply. Just one clarification, I am not a provider of services, I am an agent, something like a travel agent. So am I liable to pay service tax for the entire amount of services or on just my commision
Originally posted by : Prasad

Once the negative list in place, I am of the opinion that service tax as all exclusion is not applicable to your line of business, however the ceiling of 10L is avalaible, hence if your services income does not cross 10L it is fine.

 

regarding the various services your quoting by location of buyer and seller would not apply as the serivce is provided in India, or rather your location/ office is in India

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