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AMIT KAPOOR (SELF EMPLOYED) (491 Points)

31 December 2009

The client engaged in the business of event and managment(Exihibition) for the purpose of business many exihibitor come from different place for their staying etc the company(my client) give business to the hotels for which they charged commission in cash or bank without raising any invoice to these hotels pl reply is this commission which is received in cash by my client is applicable for service tax or not pl reply i could not find any circular or whatever i think this munny query for u all

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4 Replies

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 31 December 2009

Mr Kapoor,

UNTILL OR UNLESS YOU RAISE ANY WRITTEN CHARGES OF SERVICE YOU CAN NOT COLLECT SERVIE TAX. HOPE THE FOLLOWING RULE CAN HELP YOU

FOR MORE DETAIL YOU CAN LOG ON https://servicetax.gov.in/st-rules.htm

Rule 4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan -

(1)		Every person providing taxable service shall not later than fourteen days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of taxable service provided or to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely :-
	(i)	the name, address and the registration number of such person;
	(ii)	the name and address of the person receiving taxable service;
	(iii)	descripttion, classification and value of taxable service provided or to be provided ; and
	(iv)	the service tax payable thereon.

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Anand (Chartered Accountant) (166 Points)
Replied 31 December 2009

In this case your client acting as a agent of Hotels to whose he gives business for arrangeing business exihibition. If hotels raised bills directely to customer and commission paid to your client, then your client is not liable to sevice tax.

AMIT KAPOOR (SELF EMPLOYED) (491 Points)
Replied 31 December 2009

but anand ji can u please prove it by law you might be right for sure but who will make understand my bos i will have to show him any section or notification or whatever so please do it

regards

amit kapoor

Amir (Learner) (4016 Points)
Replied 01 January 2010

I WOULD LIKE TO DISTINGUISH FROM ANAND SIR, IN THIS CASE SERVICE TAX IS APPLICABLE "UNDER BUSINESS AUXILLARY SERVICES" AND IF YOUR CLIENT IS NOT ISSUING INVOICE THEN HE IS VOILATING RULE 4A..