11 July 2008
Fact : Assesse has been providing Clearing & Forwarding Agent Services to a Manufacturing company and earning commission on total sale month wise and at the rate mutually agreed upon. Assesse is also entitle for the incentives if certain condition satisfied ( surplus sale then agreed upon) as per one of the clauses of the agreement.
Query : Whether assesse is liable to pay service tax on the amount received other than commission amount mutually agreed upon i.e.incentives. Kindly quote the relevant judgement if any you have.
14 July 2008
The Business Auxilary service includes commission Agent. Basically commission agent means any person who acts on behalf of other person and causes sale or purchase of goods for consideration. The consideration includes both commission, incentives. So as per my view incentives are also liable to service tax under Business Auxilary service
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