Pure agent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2012 After recent changes in service tax, is there any changes in pure agency concept?

if somebody work as an agent any service tax payable on reimbursements.

previsouly it was non taxable.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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05 July 2012 All the agency/commission services are taxable unless and otherwise it is listed in the negative list. The agency commission is taxable for the service provider. He can avail small scale exemption of 10 lacs.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 Thanks Sir for your reply.

My question was not related to Agency commission. it was related to normal business like TPA where they collect the money from Insurance company and make the payment to insured. they charge service tax on their management fees but they dont charge on hospital reimbursements.

Awaiting reply

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