What are service tax and tds rules when agent b receives rs?

What are service tax and TDS rules when Agent B(Sole Proprietor firm less than 8 lac revenue/annum) generates bookings for Hotel A(Pvt Ltd firm) -

Hotel A should pay Agent B a commission of 10% for a booking of Rs.1000.

- Should Agent B add a service tax on this commission amount? How much?

- How much is the TDS % Hotel A  can deduct from this commission?

- Is the TDS deduction on (Rs.Commission) OR (Rs.Commission+Service tax)

- Is individual PAN of Agent B enough for TDS paperwork?

Your help would be greatly appreciated - thanks a lot.

 

Replies (1)

no service tax upto 10 lacs of receipt of taxable services, 

TDS applicable on gross commission recd, @ 1% u/s 194C

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