04 July 2013
DEAR SIR, A COMPANY APPOINT A BROKER FOR SELL PRODUCT IN THE MARKET. HE SOLD RS.15LAKHS AND TAKE CHEQUE IN OWN NAME AND TRANSFER TO THE COMPANY. FURTHER COMPANY RS. 1LAKH AS A COMMISSION. NOW QUESTION ARISE THAT LIBILITY OF SERVICE TAX ?????? WHETHER SERVICE TAX PAY COMPANY OR BROKER
05 July 2013
On 1 lakh, as 15 lakh is in relation with sale of product. From your query it is not clear why the cheque was in name of broker. Even if the the broker is purchasing goods from you and then selling it, the said activity will fall under Trading. Trading is not liable to Service Tax.
CAclubindia
