A company is selling thier product through agents on Commission basis. Is there any need for the company to register for Service TAX. Should the company insist the agents to get Service TAx number. Please let me know.
MARY MONICA (BUSINESS) (47 Points)
23 June 2009A company is selling thier product through agents on Commission basis. Is there any need for the company to register for Service TAX. Should the company insist the agents to get Service TAx number. Please let me know.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 23 June 2009
The company as reciver of commisison service need not register. The company as the reciver of the service need not insist as they have no obligation. However if there is any expectation by the agents that the company would take care of legal compliacne the company may inform the agents that there is a liability beyond 10 lakhs and that registration is required after the limit of Rs.9 lakhs.