Service tax
S. M. Chouhan
(Querist) 10 August 2011
This query is : Resolved
Dear Sir,
This is S.M. Chouhan Advocate. I am practicing in taxation at Bikaner in Rajasthan. My client is having teleshopee of Vodafone. The Vodafone paid Rs.5000/- per month as rent of teleshopee and Rs. 1000/- per month as staff salary to me. Apart from this the Vodafone has paid me the commission of certain % on the amount of bills collected from the customers. The Income Tax has also deducted. But at the time of issue of the TDS certificate in Form 16A they have mentioned the entire amount as commission.
The Service tax department issued a show cause notice to me, why the tax, interest and penalty should not be levied on the amount of commission received from Vodafone, as such you are using the brand name of Vodafone therefore the basic exemption limit is also not applicable on you ?
Please suggest me about the implication of service tax laws on the above situations. My hearing is on 12.08.2011.
Thanks.
Shafi Mohammad Chouhan,
Advocate Rajasthan High Court
soumitra basu
(Expert) 18 August 2011
You have to prove through bills and/or agreement that the commmission income is within the prescribed limit.
