I am a Loan Agent to few banks. When my commissions from bank gets processed and I ask for the Service Tax on that, they deny without giving me the reason.
In such instance, will the service tax liability be borne by me?
Or, like Mutual Fund and Insurance Companies, the liability of collecting service tax and paying to the Govt is with the Banks?
Rule 2 is silent on Bank's payments to agencies. However, it says the following in Rule 2 d vii :
"in relation to sponsorship service provided to any body corporate or firm located in India, the body corporate or, as the case may be the firm who receives such sponsorship service;]"
Please guide, whether the agency services which we provide to the bank in acquiring the loan clients can be construed as sponsorship service? And if yes, whether the liabiilty of collecting services from bank and paying to Govt at by myself can go off?
CAclubindia
