Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

Service tax applicability on commission received

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Service tax applicability on commission received
Query (Issue) Started By: - DEV KUMAR KOTHARI Dated:- 21-12-2009 Last Reply Date:- 23-12-2009 Service Tax
Got 1 Reply
Service Tax
Amways- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... their dealers/ agents or franchisee are reselling goods on Amway and get profit margin as dealer woul dget depending on volumes generated by the team of any dealer. Though they show it commission, but .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in fact it is margin of a trader. Whether sommission / profit earned will be subject to service or not. In case they are dealer then servicetax should not be levied. any case law on this subject and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... current positin may be explained. Reply By Rama Krishana: The Reply: I do not agree with the view that the profit of the dealers / agents working under MLM schemes like of Amways is not a commission .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... but a margin of profit. They are not only earning from direct sales from them but also get from the sale made by agents in the chain. Commission is highly dependable on performance. The marketing and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... procedure is directly under the umbrella of Amways. Though not sure, but of the view that they also do not get themselves registered with local VAT department as a dealer. So, there is no reason to tr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eat the profit earned by them other than commission. Service tax is fully applicable.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates