Is Service tax applicable on brokerage received from Cloth Merchant.
Kindly help out, and also add any notifications available on the topic.
Sastry
(Group B)
(45 Points)
Replied 23 November 2011
If you are promoting the business of the principal cloth merchant by selling his goods for a consideration like an agency or middleman, I think it attract ST under business auxilliary service or business support service. I think, brokerage as used by you and the context I understand from the post, it attracts ST and the classification is practically irrelevant as the rate is uniform.
Sultan Mohiuddin
(Practicing Chartered Accountant)
(56 Points)
Replied 25 November 2011
i think there is no liability of service tax on you!
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 28 November 2011
.
BROKERAGE IS CONSIDERED AS TAXABLE SERVICE UNDER THE HEADING BUSINESS AUXILIARY SERVICE <> DATE OF INTRODUCTION 01.07.2011 VIDE NOTIFICATION NO 7/2003 DATED 20.06.2003.
PLEASE SEE THE PORTION COMMISSION AGENT..
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