iam a collection agent (presently for 2 finance inst.) i get some percentage on the collection amt. companies pay my commission after deducting TDS @10%. my doubt is - should i collect anything as service tax apart from the TDS they deduct from me? my NET receipts is 12 lakhs P.A
28 October 2011
Collection Agent service falls under the category of Business Auxiliary Service under Sub-clause (vii)of Section 65(19) of the Finance Act' 1994, as the commission earned by you is exceeding the exemption limit of Rs. 10 lacs your required to charge and remit service tax on the commission earned for rendering the commission agency service.
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