An Organisation collects Rs. 55000 from the customer regarding payment of road tax, And it pays Rs. 46000 to the government as road tax.
Whether it is a taxable service?
Whether this organisation need to pay any service tax?
2 Replies
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 01 December 2011
I think it is taxable service
only exemption is for expenses incurred just as a pure agent and for that 1 important condition is that provider should collect only actual amount of expense.
Here Service provider is collecting excessive amount, thus expense recovered will be added to taxable amount of service
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 04 December 2011
.
IF THE TURNOVER IS LESS THAN TEN LAKH DONT BOTHER.
IF YOU CROSS 10 LAKH PLEASE VISIT THIS LINK
https://servicetax.gov.in/st-profiles-home.htm
Business Auxiliary Service, PLEASE READ (B) (a), Commission Agent
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