08 January 2011
One of my client is DSA (Direct Selling Agent) of an insurance company. He is also appointing sub-agents under him.
As insurance company is liable to pay service tax on insurance auxiliary services, insurance company is shifting 50% burden of service tax on DSA i.e. making commision payment after deduction TDS and Service Tax.
In turn DSA is also passing on some commision to sub-agents appointed by him. So my question is
1. Whether Insurance compnay is right in deducting service tax ? 2. Is he liable to pay service tax on commision paid by him to sub agents for using their services to procure business ? 3. Can he take credit of Service tax deducted by insurance company ?
CAclubindia
