27 May 2008
firm has made an agreement naming "CONDUCTING AGREEMNT"
firm 1 has sold property to firm 2 for business purpose only, in which firm 2 is paying to firm 1 fixed monthly amount [say more than 8.5 lac per month] the condition is that either pay this fixed amount or fixed percentage of sale [say 5% of sale] that means either fixed amount of rs. 8.5 lac or 5% of sales whichever is higher. that fixed amount is called conducting fees. My question is whether service tax is liable? payable? if yes then under which category?
CAclubindia
