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Service tax on Business Auxillary Service.

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..... Service tax on Business Auxillary Service.
Query (Issue) Started By: - MANASH MUKHERJEE Dated:- 23-2-2016 Last Reply Date:- 24-2-2016 Service Tax
Got 3 Replies
Service Tax
Dear Sir, A party "X" is providing service to another party B by selling the goods of B. Party X receives commission from B and pays Service tax on the commission received under the category of ' Busi .....

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..... ness Auxillary Service". Now subsequently, it is found that party B also provides transportation service to party B for bringing goods from the go-down of B to the go-down of X.The party X also receives commission against carriage contract.However, no service tax is paid by X against commission received on carriage contract. Does the portion of the commission received against carriage contrac .....

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..... t falls under reverse charge mechanism. The party X is registered under BAS only. Reply By Ganeshan Kalyani: The Reply: Sri Manash ji,It seems that X is in order to the goods delivered at his godown fron B's place arranges for freight. He does not provide GTA service to B but in fact he would be getting reimbursed from B (assumption). In addition to it X also gets some commission for doing so. I .....

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..... assume that the freight arranged so integrated to the main service of selling goods of B and hence the commission paid. Therefore in my view the commission received toward freight should also be added to Business Auxiliary Service and should be offered for tax. This is my view. Thanks. Reply By KASTURI SETHI: The Reply: SH.MANASH MUKHERJEE JI, Service Tax is required to be paid on the amount o .....

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..... f freight. Agreed with Sh.Ganeshan Kalyani, Sir. Reply By Ganeshan Kalyani: The Reply: Thanks Sri Kasturi Sir for validating my views. Thanks.
Discussion Forum - Knowledge Sharing .....

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