22 March 2016
Dear sir I am doing business as direct selling agents for nbfc and banks.For gave service they are paying commission with deduction of tds.In that commission,i giving mojar amount to my referrals who are gave the business to me.
My queries are 1. Is service tax applicable for commission buz ? 2. Let we consider My yearly commission around 10 lakhs,in that i am paying 80% or 8lakhs of commission paying to my referrals.rest only 2lakhs ie 20%. I am only earning almost 2 lakhs p.a.like this case how it is possible pay service tax (14.5%)for whole commission received.
23 March 2016
Yes service tax would be applicable on commission earned entire 10 lacs. You can charge service tax in your bill and recovered it from BANK
CAclubindia
