Pan card service
This query is : Resolved
11 May 2013
Dear Experts,
A ltd co. is maintaining a portal through which it provides service of PAN card. in this case there are 3 people involved A(LTD CO, B(2nd party) and C(individual operating the portal) Now if C charged Rs. 96 from customer and after deducting rs.1 his commission paid Rs.95 to A and now A will pay Rs. 1 commission to B and retain Rs.1 with him. and Rs. 93 paid to UTISL(CO) issuing PAN on behalf of income tax dept.
tell me the service tax applicability??
whether A has to pay service tax on Rs. 1 from his pocket or he can charge from UTISL??
Whether B will charge service tax from A.
AND ALSO TELL ME THE TDS IMPLICATIONS.
A ltd co. is maintaining a portal through which it provides service of PAN card. in this case there are 3 people involved A(LTD CO, B(2nd party) and C(individual operating the portal) Now if C charged Rs. 96 from customer and after deducting rs.1 his commission paid Rs.95 to A and now A will pay Rs. 1 commission to B and retain Rs.1 with him. and Rs. 93 paid to UTISL(CO) issuing PAN on behalf of income tax dept.
tell me the service tax applicability??
whether A has to pay service tax on Rs. 1 from his pocket or he can charge from UTISL??
Whether B will charge service tax from A.
AND ALSO TELL ME THE TDS IMPLICATIONS.
13 May 2013
first look in to the aspect called small service provider, as per Small service provider concept the taxable service exceeds 10lakhs then ST is applicable, Hence find out whether commission exceeds Rs 10lakhs for the year, then decide about the applicability.
Secondly in respect of ST to be charged depends on the agreement
eg:
a) if the agreement says that commission includes all taxes then it is inclusive Service tax, hence receiver has to do back calculation and ST to be paid.
b) if the agreement says it is excluding tax or No words about tax aspect then commission agent can collect Service tax from the UTISL
Thirdly in respect of TDS, It covers under 194H and the UTISl has to pay the TDS for the commission paid to B and B has to pay the TDS on commission paid to A.
The person who has deposited the TDS has the right to collect TDS, in your case the B has right to collect from A and UTISL has right to collect from B
Secondly in respect of ST to be charged depends on the agreement
eg:
a) if the agreement says that commission includes all taxes then it is inclusive Service tax, hence receiver has to do back calculation and ST to be paid.
b) if the agreement says it is excluding tax or No words about tax aspect then commission agent can collect Service tax from the UTISL
Thirdly in respect of TDS, It covers under 194H and the UTISl has to pay the TDS for the commission paid to B and B has to pay the TDS on commission paid to A.
The person who has deposited the TDS has the right to collect TDS, in your case the B has right to collect from A and UTISL has right to collect from B
26 June 2013
I agree with the expert. It is very simple and you have to apply the following rules
1) Is the receipt or billing is below 10L
2) Is the TO exceeds 10L
3) If it exceeds and the services are taxable then you have to charge and pay the Service tax on accrual basis means you have to pay the tax without waiting for payment to be received by you against the services rendered.
1) Is the receipt or billing is below 10L
2) Is the TO exceeds 10L
3) If it exceeds and the services are taxable then you have to charge and pay the Service tax on accrual basis means you have to pay the tax without waiting for payment to be received by you against the services rendered.
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