Service tax on incentive

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We are a body corporate in field of poultry feed supplement trading business . We paid incentive to our sales man ( employee) ,as well as out side sales man for achieving sales target. In this regard can service tax is payable .If yes ,who are liable to pay, & what amount, & is there any abatement. You are requested to guide us. Thanking You, Regards Rajkumar Gutti
Replies (3)

Service tax is to be paybale by the receiver of the service, in this case your sales man. As this is your expenditure and under Bussiness Auxillary service is laible to be paid only by service provider. Therefore you need not to pay service tax. However, your sales man has to pay S.T provided their gross income exceeds Rs 10,00,000/-.

I hope this would be helpful.

For any query reachout to adviceservicetax @ gmail.com

Service tax is to be paybale by the receiver of the service, in this case your sales man. As this is your expenditure and under Bussiness Auxillary service is laible to be paid only by service provider. Therefore you need not to pay service tax. However, your sales man has to pay S.T provided their gross income exceeds Rs 10,00,000/-.

I hope this would be helpful.

For any query reachout to adviceservicetax @ gmail.com

Service tax is to be paybale by the receiver of the service, in this case your sales man. As this is your expenditure and under Bussiness Auxillary service is laible to be paid only by service provider. Therefore you need not to pay service tax. However, your sales man has to pay S.T provided their gross income exceeds Rs 10,00,000/-.

I hope this would be helpful.

For any query reachout to adviceservicetax @ gmail.com


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