Servicet tax issue - agent

This query is : Resolved

ragavendhiran (Querist)
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22 January 2009 In case of travelling office, they collect taxi/bus/call taxi fare of their taxi/buses/call taxi and fare of other vehicle owners. They repaid fare amount to other vehicle owners after deducting their commission.

Whether they liable to pay service tax on entire amount received or
They liabile service tax on their bus/taxi/call taxi fare & commission earned?

What is the position if they not mentioned their commission in bill to user ie they issued bill only fare amount?

With adv. thanks

CA Amarpal

CA Amarpal (Expert)
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24 January 2009 Dear

As per the given facts,

The taxi service provider shall charge service tax on the entire amount of services received for providing taxi service (including commission).

if the taxi service provider does not include the commission amount in the bill & collect the commission in cash or otherwise, it will evasion of tax.

with best wishes
amarpal@icai.org