Commission income

This query is : Resolved

CA.Vijay Shetty (Querist)
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02 February 2009 Our Client, a mandap keeper, receives some percentage say 25% of the bill chaged by the stage decorator to the party booked the hall. The stage decorator separately charges some amount the party and pays 25% of the bill chaged to the mandap keeper for utilising the facility. Whether the same can be treated as commission income? and whether there will be any implications on the above issue to the mandap keeper, who only charges rent to the party.( like above also getting some amounts from the lighting ,shamiana contractors etc )

Arbind Aggarwal

Arbind Aggarwal (Expert)
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06 February 2009 Yes it is taxable under service tax as business promotion under business auxiliary services and in accounts to be treated as commission income.