I sold a plot through a broker. The broker will issue me a receipt for his commission in the letterhead of a company which he is part of. Am I supposed to withhold and pay service tax and only pay the rest of the commission to him?
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Service tax on commission for sale of land
Replies (8)
You need not withhold service tax. You can pay the full amount to him.
You may have to withold income tax(TDS) at 10%.
| Originally posted by : praveen | ||
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You need not withhold service tax. You can pay the full amount to him. You may have to withold income tax(TDS) at 10%. |
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Thank you for your reply. The receipt will be in the name of the company (not the individual). So I don't think there is a need to withhold income tax. Could you kindly provide some reference which says individuals need not deduct service tax when making payment to a company which provided services (receiver of service is an individual and provider is a company).
U have to just deduct tds on commission amount @ 10%
No need to deduct service tax while paying commission as above.
If amount exceeds rs. 10 lakhs
The agent will have to collect service tax as it's his Duty to do so.
Tds will have to be made depending on facts considering provisions of sec.194H if resident and sec.195 if non resident
Sir, we engaged a partnership firm for conducting topographic survey of land. In addition to their fee we have to pay transportation charges as per terms for bringing their equipments to the site. In their bill, they have charged service tax on their fee and transportation charges. Kindly inform whether we are liable to pay service tax on such transportation charges.
Subject to the terms and conditions of the your contract, you are not liable to pay service tax.
Sir Thanks for the reply. We did not agree to pay service tax on transportation charges.
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