25 August 2012
I am working in one of the broadcasting comapny.I want to know that after sale of TV spot to any client involving Agency as middle man the way bill to be charged. In this case the service tax to be calculated in following manner or else any different way: Gross amt minus Agency commission = Net amt after agency commission on which service tax to be charged or directly on gross amt which includes agency commission. Please clarify.
25 August 2012
The service tax is on gross amount charged and not after deducting the commission so in the above case the service tax has to be calculated on the gross amount charged for the service provided.