Service tax applicability on commission

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..... Service tax applicability on commission
Query (Issue) Started By: - Sharad Aggarwal Dated:- 12-2-2010 Last Reply Date:- 13-2-2010 Service Tax
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Service Tax
Dear Friends need ur .....

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..... feedback.case study: Insurance company 'I 'pays commission to the agent 'A' and the applicable service tax (pre deducted)on the commission is paid out by 'I' direct to the govt. 'A' further gives refe .....

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..... rral commission to "R". 'R' does not collect any service tax on its receipts from 'A' and so does not deposit any service tax.please comment the service tax liability on part of 'R' keeping in mind th .....

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..... at 'I' has prededucted service tax on the bigger commission and 'A' only partially pays to'R'. ur comments case study is apprecited. Reply By Surender Gupta: The Reply: Though the referral commission .....

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..... is illegal as per the law of insurance (IRDA), but since the referral commission is being paid to A to R, the same would constitute promotion of service of A by the R. R is not involved into any insu .....

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..... rance agency service, but merely promoting the service of A. Therefore, R would be liable to tax under Business Auxiliary Service (BAS). Here the service tax paid by the 'I' on commission paid to A is .....

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..... not relevant.
Discussion Forum - Knowledge Sharing .....

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