Service tax on commission paid in general

I have a query on Service tax.We have a client who takes cars from us for his hotel which we bill directly to them.Now in case of their customers taking cars directly from us from our help desk there we have to pay commission to the hotel for that.Now is this commission payable liable to service tax.
 

Replies (1)

HI,

Everything would depend on what is the agreement entered into by you and the hotel.

But prima facie it appears that the hotel is acting as your commission agent and is promoting your Hire a Cab Service. The Commission paid to a agent has been included in the Business Auxiliary Services" wherein the Commission his considered as a consideration for providing such services. Thereofre Service TAx is payable on the amount of commission.

 

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