Service tax on commission based online business

Dear madam, Please find the point wise replies to your questions as follows: 1. Yes. The rate of Service Tax is 14% with effect from 1st June 2015. 2. Yes. Swachh Bharat Cess of 0.50% is chageable over and above the service tax, on the value of taxable services with effect from 15th November 2015. 3. The threshold limit of 9 lakhs is for obtaining registration under Service tax. After crossing 9 lakhs, you should obtain registration. However you can avail small service provider exemption of Rs. 10 lakhs i.e. you wouldn't have to charge or pay Service tax until your turnover firstcrosses the limit of Rs. 10 lakhs in a financial year. Once crossed, you shall be liable to pay Service tax on every Ruppee earned thereafter. 4. Service Tax on Rs. 100 for Services rendered hereon i.e. after 15th November 2015 shall be Rs. 14.50 i.e. @ 14.50% on the value of taxable service. 5. You can charge Service Tax on your vendor and pay the same to the Central Government. The amount may be borne by your vendor, but the liability to pay remains with you. 6. You shall only be responsible for the services you provide. However, if the vendors provide services under your brand name or trade name, you shall be liable to pay Service tax on such services also, as an aggregator of such services. 7. If the vendor sells the goods, he/she shall pay the respective state VAT or CST, as applicable, as the case may be on the sale value of the goods. Please note: the above comments are based on the assumption that you are located in India (excluding J&K). If you are located outside India or in the state of J&K, the position would be different. Hope the above clarifies.

Thanks a lot Raghuveer. Yes that does solve my problem to an extent. However, i also wanted to understand how discouts are treated under service tax/VAT. If you could also help me with that, it would be great. Thanks in anticipation.