Whether this is a taxable service?

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An Organisation collects Rs. 55000 from the customer regarding payment of road tax, And it pays Rs. 46000 to the government as road tax.

Whether it is a taxable service?

Whether this organisation need to pay any service tax?

Replies (2)

I think it is taxable service

only exemption is for expenses incurred just as a pure agent and for that 1 important condition is that provider should collect only actual amount of expense.

Here Service provider is collecting excessive amount, thus expense recovered will be added to taxable amount of service

.

IF THE TURNOVER IS LESS THAN TEN LAKH DONT BOTHER.

 

IF YOU CROSS 10 LAKH PLEASE VISIT THIS LINK

https://servicetax.gov.in/st-profiles-home.htm

 

Business Auxiliary Service, PLEASE READ (B) (a), Commission Agent


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