Commission income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2016 if an assessee makes payment to transporter onbehalf of service receiver by keeping his commission (say 2%),whether he is liable to pay service tax if total commission income during the year does not exceed 10lacs?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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01 December 2016 If commission income exceeds Nine lakhs you have to start process of registration of service Tax exceeds Ten lakhs start collecting service Tax. Once you come under purview of Service Tax you are liable to collect service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2016 thank you sir for reply,so it means if for turnover of Rs.1crore he receive from service receiver Rs.1crore and makes payment to transporter Rs.98lacs by keeping his commission of Rs.2lacs,he is outside the purview of service tax...

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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14 December 2016 Yes, if it is less than Threshold limit service. Tax not applicable.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2016 Thank you sir for your reply......