19 August 2013
My client is a sub-agent of air travel agent. That air travel agent receives commission from airlines and pays service tax on that. Air travel agent passes on some part of commission to sub-agent. i.e. my client and collects service tax from him. My question is whether we can claim input credit on that? Whether we have to pay service tax on commission received by us?
20 August 2013
You are liable to pay the service tax charged in the bill to the payer of the commission. You can avail CENVAT
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case