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.
CAclubindia
