SIDDHARTHA SANKAR ROY (Government Servant -MOF) (868 Points)
21 February 2009A firm renders the service of depositing monthly cheques issued in it's name by Tea Gardens in the bank, collects the cash and hands over to the Tea Gardens against some commission.
The garden owner says that due to security reasons they are hiring the service of the service provider.
Is this service taxable ?
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 22 February 2009
Yes, services are taxable under business suport service. The service provider is acting as a commission agent.
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