08 January 2014
Yarn Purchase And Manufacture And Trading of grey is my bussiness. some times i earned commission from trading of grey of another parties and vice versa commission paid. Now my Question is that Whether i liable to pay service tax on earned commission?
UNDER NEGATIVE LIST INCLUDES ENTRY NO. 5 TRADING OF GOODS
ANALYSIS OF TRADING GOODS Would activities of a commission agent or a clearing and forwarding agent who sells goods on behalf of another for a commission be included in trading of goods? No. The services provided by commission agent or a clearing and forwarding agent are not in the nature of trading of goods. These are auxiliary for trading of goods. In terms of the provision of clause (1) of section 66F reference to a service does not include reference to a service used for providing such service. (For guidance on clause (1) of section 66F please refer to Guidance Note 9) Moreover the title in the goods never passes on to such agents to come within the ambit of trading of goods.
SO YOU ARE LIABLE TO PAY SERVICE TAX BECAUSE YOUR SERVICE IS NOT COVERED UNDER NEGATIVE LIST
CAclubindia
