17 November 2014
i explain my problem through example.
AMV consultancy receive a contract from HUL for booking a hotel as par requirement of HUL at various location in india on 5% commission . AMV book a hotal and arrange other facilities from outside the hotel like leptop, projector, cake and chocolate. After completion of meeting AMV receive 2 Invoice in own name, one from Hotal which include service tax i.e Rs 30662 ( Rs 25000+Vat@14% Rs 3500+Service Tax@8.65%Rs 2162) and another from other without service tax i.e Rs 10000.
After which AMV issue a invoice to HUL like this format HOTAL EXP.(25000+3500+1500) 30000 Projector on rent +Cake 10000 Commission on Rs(38500) 2000
Service Tax @12.36% on Rs(42000) 5191 Total Bill Value 47191
As per my thinking that is not a pure agent service because we add extra of Rs 1500. we paid Rs 3029 to service tax department after claiming cenvat credit of Rs 2162.
My Question is this 1. Can we liable to deduct tds on payment made to hotel and other vendor if yes then under which category?
2. Can the format of issuing invoice is correct or not if not than what is correct format ?
3. Can service Tax is applicable only on commission value or on full value of invoice?
19 November 2014
If there is no contract between Hotel and your clients, there is no need to deduct tds. The service tax you are collecting, remitting after availing cenvat is correct. Service tax is applicable on full value.
CAclubindia
