Sales commission

This query is : Resolved

Naresh C A (Querist)
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30 January 2015 I am a Sales commision agent of a Pharmacutical Company, I am getting Rs. 25 lakhs as sales commsion from my principal.
out of this amount Rs. 5Lakhs is my income and rest of Rs.20Lakhs is paid to other representitives of company.
1.Do i Required to pay Service tax or not?
2. Should I collect Service tax from my principal?

PUNEET GOYAL

PUNEET GOYAL (Expert)
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30 January 2015 Yes you are required to collect service tax from your principal on total commission amount i.e. 25 lakh and deposit it to Govt.

I hope above is sufficed. Your valuable feedback in respect of same would be highly appreciated.

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