service tax liability for an agent

Hi friendzz,

Kindly suggest.

If i have a brand show room and i run it on behalf of the brand, for which i get say Rs.100000.00 as running and maintainance of the store and Rs.50000.00 above that as my fixed comission. also in addition to fixed comission  i recieve comission on sale which varies in quantum  with sale ,say Rs.60000.00

 

So the cheque tht i recieve from the company is for Rs.210000.00 incl of all taxes ,

My question is, on what amount do i need to pay service tax on?

a) 210000.00

 

         or

B)110000.00

 

 

Replies (1)

According to me, you have to pay service tax on Rs. 2,10,000/-. Because service tax is payable on whatever you receive from service receiver. You can't treat the cost which you incurred in providing service as a reimbursement. If I am wrong, please correct me. 

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