Service tax for commission agents

The problem is Commission Agent collects SERIVE TAX on behalf of his client(serive provider) and remitts whole amount  to the service provider. But Serive Provider has not remitted it to govt. and asking Commission Agent to remmit service tax to govt. for that client is gonna reimburse to Agent only Service Tax amount. Now, Is Commission Agent is liable to pay this service tax with interest?

My opinion is, as agent is collecting service tax under client name and remmits to him so he is not at all liable to pay Serive Tax and it is the Serive Provider's liability to pay Serivce Tax to Govt.

Tell me, is my view point is correct, if not what is the remedy now for Commission Agent?

Replies (2)

The person who is raising bill and charging service tax on the bill, is liable to pay service tax.

Commission agent is liable to pay service tax only on his commission charges.

There is no reverse charge for commission other than if services from outside India.

Therefore service provider ( commission agent) ONLY responsible as he is providing the service. 

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