22 June 2009
One of my client rendering broad casting services. to advertise in his channel, he is using the services of ad agencies.
My query:
The agency is recieving the commission from the customer directly and paying the remaining amount to my client. Suppose if the totak cherge for broad casting is Rs.20000 then his commission is 15% i.e3000. the agency is recieving 20000 from the ultimate customer and paying 17000 to the channel(my client). is service tax is to be charged on 17000 or 20000 ?
22 June 2009
Service tax shall be charged on actual amount received by your client. Further, if you want to charge ST on 17,000 then your invoice should be shown as commission separately Rs. 3,000.
Should you need further clarification, please revert to me
CAclubindia
