Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Service tax on commission income

Panneerselvam (Accounts Officer) (66 Points)

28 January 2016

we are doing commission agency business. Our annual Commission more than 1 crore. We are receiving Commission once in 6 month. Now we are paying Service tax monthly raising commission bills. my question is we are receiving commission 6 months once, so, can we pay Service tax at the time of receive the service tax payment?

Reply
Follow
Share

2 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 28 January 2016

If taxable service is <=Rs.50 lacs in the PY, then there is option to pay ST on receipt basis upto Rs.50 lacs of turnover in the CY (for individuals/firms). But in your case, this option is not applicable. Hence I think you will have to pay ST on the basis of invoice.

1 Like