service tax

Querist : Anonymous (Querist) 25 February 2011 This query is : Resolved
i have a franchise business where company pays me rs 85000 per month as 32000 for staff salaries, 10000 for shop rent, 5000 as electricity bill, 2000 telephone bill, and rest 36000 as my commission.
Now after 2 years service tax officer are saying that as i am using brand name of a company so i am liable to paid service tax on my commission and there is no service tax assumption on my total commission.
Plz guide me what i can do or is i am liable to pay service tax on my commision. i.e; 36000 per month. Is there any assumption on my yearly commission.???

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R.Ramachandran (Expert) 26 February 2011
Answer to your query can be provided only after completely studying the Franchisee Agreement and the terms contained therein.

soumitra basu (Expert) 15 April 2011
Your comission is less than 10.00 lacs per year and as such it will not attract service tax if you do not have any other income liable to service tax.

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