For example A is a full-time employee of XYZ enterprises, XYZ pays commission to A for sales of goods of the firm over and above his fixed salary every year. will A be liable to pay service tax if his commission income ( as an incentive from the firm) is over 10 lacs in a year received from the employer. I have heard that service tax is not applicable in the employee-employer relationship and if an employee is a full-time employee.
service tax is exempt by virtue of section 65B(22). no service tax shall be payable in case of any service provided by employee to its employer in raletion to employment.
@ ATUL MANE
If there is no employer-employee relation between you and your company, then service tax will be applicable. If your company provide you salary, there will be no service tax applicablity.
its treated is incentive to employee ., the service tax is not applicable
Any case law wrt this not applicability?
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