07 November 2012
W Pvt Ltd. (Delhi) based travel agency, now he enters into a contract with me (Firm). According to the terms & Conditions i will arrange driver and car in kolkata for his company. customers will directly contact to W Pvt Ltd. for booking purpose. W Pvt. Ltd. will raise the entire bill including service tax on his customer and the customer will issue cheque in the name of W pvt. ltd.
In doing all this work the above company will give me certain amount of profit on base fare and drivers shares after deduction the TDS on entire 90/-.
suppose entire bill amount was Rs. 100. W Pvt Ltd. kept his 10/- And issued me ch. of 89.1/- ( after deducting TDS on my share + drivers shares) In this 89.1/- my share is 15% of base shares (before TDS)
At time of making payment of MY SHARE of 15% of base fare, W Pvt. Ltd. deduct service tax and after deducting ST on balalnce amount of 15% shrare it deduct TDS and after that issue me cheque.
I want to know whether there is any service tax liability on me? if yes than on what amount?
on the above contract TDS will be charged U/s 194C or 194H?
09 November 2012
The IT query and ST query should ideally be sent separately. AS far as ST is concerned as you are in this case working as an agent for marketing the services of Kolkatta cab service, you are liable to pay ST on 15% unless you are exempted under the Small service provider.
09 November 2012
sir, in this entire 89.1/- cheque is on my firm name, from there i will make payment to drivers of there shares. I am just raising the bill on 15%.
CAclubindia
