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dEDUCTION OF SERVICE TAX ON COMMISSION

This query is : Resolved 

18 July 2010 is the service provider liable to deduct SERVICE TAX on commission paid to Distributor.
AS THE COMMISSION IS AN INCOME OF DISTRIBUTOR SO HE IS REQUIRED TO PAY SERVICE TAX BUT CAN THE ENTITY PAYING COMMISSION DEDUCT SERVICE TAX AND THEN PAY COMMISSION TO THE THE DISTRIBUTOR?

sO ENTITY WILL HAVE TO PAY THE SERVICE TAX ON BEHLF OF DISTRIBUTOR.

18 July 2010 Yes if it is booked as commission TDS must be deducted u/s194H.

19 July 2010 SORRY MY QUESTION WAS NOT REARDING TDS BUT SERVICE TAX


19 July 2010 The person who provides the Taxable service on receipt of charges is responsible for paying the service tax to the government.

19 July 2010 in service tax it is not deducted by payer, rather it is charged in bill by service provider and service receiver has to pay it to the service provider who will deposit it to govt. account. in case of carriage of goods, in some cases it is paid by service receiver. but there is no provision for deduction of service tax from payment made



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