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Sales commission

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 August 2012 Sir,

One of my friend have a business of Retail branded Shirts, the company gave material as a consignment basis and give monthly sales commission (around Rs.15000/ pm),my doubt is whether my friend has to pay service tax on that amount

Thanks & Regards
Amar
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Nilesh

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Nilesh (Expert)
14 August 2012 Service tax would be applicable. However your friend can enjoy basic exemption limit (Rs 10lacs) benefit and no service tax

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