E Commerce Business, Service Tax

[Karuna Jaiswal]

I have a query for one of my client who are to set up new e commerce business.

They are like how Amazon provides e commerce aggregator.

1. Whether the commission is chargeable to Service Tax?

2. If they engage a Courier service whether the Service tax is eligible as CENVAT to be set off against the Service tax payable by on commission?

Posts / Replies

[KASTURI SETHI]

Dear Querist,

Point-wise reply is as under :-

1.Yes.

2. Yes. Subject to prove nexus between input service and output service in terms of Rule 2(l) (i) (ii) of Cenvat Credit Rules, 2004.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.