Whether st applicable to dsa commission agent

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bhavin shah (Querist)
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28 January 2014 Dear Sir,

Whether ST applicable to DSA Commission agent of bank to arranging loan (Four Wheelers) to client.

My in 2013-14, Commission income is excedding rs. 10 lacs. (as DSA Commission agent of the various banks).

1). Whether ST applicable from 01.04.2014 onwards.....?

2). To whom, I has to charge service tax ..? (i.e. To Bank or To my Client...?)

3). If in year 2014-14 My Commission income will less than 10 lacs then, Whether ST applicable from 01.04.2015 onwards...?

Pls reply as soon as possible..
my email id : bhavin.cma@gmail.com

Thanks

CA Suresh Jain

CA Suresh Jain (Expert)
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29 January 2014
Hope you have started paying service tax as your turnover of taxable service is already exceeded Rs. 10 Lakh. (hope it was below 10 lakh in previous year i.e. 2012-13)

point -wise reply :-
1. yes, service tax shall be applicable w.e.f. 01.04.2014 from very first rupee;
2. Service tax is to be charged from the person to whom you are billing ;
3. as per present exemption notification, if value of taxable service remains below Rs. 10 lakh, you shall be eligible for exemption upto 10 lakh in year 2014-15

You may contact us for consultancy

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bhavin shah

bhavin shah (Querist)
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29 January 2014 Thanks Mr. N Jain for given reply to me.

But further i have to query on reply by you.

1). To Whom i have to raised bill with service tax amount(i.e. Total Bill including service tax)
...
a). TO Bank or b) To Client (for which i have to arrange four wheeler loan)....?

Because i have dsa agent of bank and i have give service to both bank and our client.

2). In Which Service Tax Registration required .... (Regular or Business Auxiliary)

3) In Point - 3, My query is as below mentioned.

i). If in year 2013-14, My Commission Income exceed of Rs. 10 Lacs. So, I have to pay service tax from 01-04-2014 for 2014-15 year of Commission Income. But in 2014-15 My Commission Income is not exceed of Rs. 10 lacs. Then, Can i continuous charged service tax from 01.04.2015 (for the year 2015-16 Commission Income).....?

Sure sir, if my income exceed rs. 10 lacs then i have contact to u for registration and further service tax services.

Thanks,

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CA Suresh Jain

CA Suresh Jain (Expert)
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30 January 2014 1. To whom to bill depends on who appointed you and who pays you.
2. DSA are agents of bank facilitating bank - it will be a business auxiliary service
3. if your taxable income exceeds 10 lakh in 2013-14,
a. you have to pay service tax on the amount exceeding 10 lakh in 2013-14
b. you have to pay service tax in 2014-15 on all billing even if amount of taxable service does not exceed 10 llakh
c. if aggregate amount of all taxable services remains below 10 lakh i 2014-15, as per present law, you shall not be eligible for exemption up to 10 lakh

bhavin shah

bhavin shah (Querist)
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30 January 2014 Thank Sir.

Further query on reply...

1). I seen in market that most of all DSA Commission Agent of Bank has never issue any invoice to bank.
and never charged service tax on it.

Pls. clarify