08 March 2011
1) MR. X IS GIVING CLIENTS TO MR. Y (WHO OWNS SERVICE APARTMENTS. AT THE MONTH END MR. Y GETS THE FULL PAYMENT AND MR. X GETS HIS COMMISSION FOR GIVING MR. Y CLIENTS. WHETHER SERVICE TAX WILL APPLY ON SUCH COMMISSION IN THE CASE OF MR. X?
2) AND MR. X WANTS TO FILE AN INCOME TAX RETURN FOR THIS YEAR BY SHOWING SUCH COMMISSION INCOME. IS IT NECESSARY TO ALSO PREPARE A BALANCE SHEET?
09 March 2011
Commission is liable to service tax under BAS. Exemption Rs.10 lakhs. Since commission is under business income, balance sheet is necessary for IT.
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