Applicability of service tax on brokerage & commission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2012 1. We are running a proprietorship firm and working with an edible oil manufacturer as a C&Fa Agent. We receive brokerage & commission charges from manufacturer on sale of their edible oil on basis of weight. Now my query is, are we liable to pay service tax or not and at what rate.

2. Also we receiving the Administration charges from manufacturer for controlling thier stock, Is the service tax liable? if yes then what will be the rate of s.t.

Thanks / Ranjeet Singh - 09457757186

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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29 November 2012 Yes, The services provided by commission agent or a clearing and forwarding agent are notin the nature of trading of goods. These are auxiliary for trading of goods and service tax would be chargeable @12.36%.

Administrative charges is also liable for service tax under the same category.