Service tax on unbilled commission!

Dear friends,

Pls clarify my doubt.

1. Our client is earning 3 lakhs income from man power supply on which they are voluntarily paying Service tax.

They are also earning another 4 lakhs commission income from sale of scrap and other things...

My question now is whether they have to pay Service tax on this 4 laksh also eh? Also this 4 lakhs is unbilled income...

 

Pls clear this....
 

Replies (4)

Sale of scrap is not liable to service tax.

But commission from sale of scrap... is it not covered under business auxilliary services???

Commision from sale of scrap is taxable under BAS. You are paying service tax on the manpower supply without availing the basic exemption of Rs.10 L. Hence you have tax liability on the commission as well. Billing is compulsary under service tax  and non-billing does not absolve you from tax.

Thanks a lot sir...

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