Service tax on commission income and commission expense

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This query is : Resolved

vinay (Querist)

09 November 2012 Sir,
we are manufaturer of plastic based fleible packaging film materials.we book the order for engraving or re-engraving of printing cyliders as per design and artwork approved by customer , manufacturer of cylinders make invoice in name of customer , but as per terms condition we get commission on the order of such customer.

some time we may to pay commission to the person who place their customer order,

is commission income or commission expense attract service tax liability, can we collect this service tax from cylinder manufacture to whom we book order of our customer.

can cylider manufacturer avail credit of service tax paid on commission income which is payable to their order booking person.

rgeds
Vinay Karnik
Ahmedabad

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

10 November 2012 You are liable to pay ST from 2005. The small Service Provider exemption of 10 Lakhs is available if your pr yr taxable services does not exceed Rs. 10 lakhs.
Yes you can charge the services to the manufacturer of cylinders who is eligible for provided he pays, CED or ST.

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