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TMI BlogQuery on taxationX X X X Extracts X X X X X X X X Extracts X X X X ..... Query on taxation X X X X Extracts X X X X X X X X Extracts X X X X ..... provider). The business is in such a way that I am getting the service for Rs. 250 per person (login) including service tax. I am planning to sell it for Rs. 250. Will I have to include Service Charge in the bill to my clients? If so, how much? Reply By Rajesh Nathoo: The Reply: Dear Mr. Laijesh , You are acting as an intermediary between main service provider and client . The amount of Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax u have to pay depends on your status as a pure agent or not . To qualify as a pure agent under Service tax laws certain basic conditions are to be satisfied e.g. 1. The Service Receipient should not u are acting as an agent and who is the main service provider . 2. U should not have any control on price to be charged from service receipient . i.e. Service Receipient should clearly know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how much are ur service charges and how much main service provider has charged u for the particular service . 3. There should be valid agreements between u and service providers and u and service receipients which should reflect u are acting as an agent in the whole process. etc. In case u satisfy the above conditions , u are liable to pay ST on only Service Charges as main amount charged by ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice provider would be reimbursable in nature . i.e.
In case u do not satisfy the above conditions , u are liable to pay ST on Rs 250. However u can take cenvat credit of ST charged by the Service Provider . X X X X Extracts X X X X X X X X Extracts X X X X
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