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Service Tax - Banking and Other Financial Services - Non-payment of Service Tax on Agency Commission received by M/s. State Bank of Mysore (Treasury Branch) - Reg.
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Service tax on agency commission: nodal bank netting can reduce declared tax, prompting compliance review and corrective action. Banks must include the full agency commission received on government transactions in their service tax base; instances were found where nodal branches netted commissions and currency chest branches paid service tax only on the net amounts, prompting a review of nodal bank registration and reporting to ensure correct tax liability and remedial action by field formations.
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Service tax on agency commission: nodal bank netting can reduce declared tax, prompting compliance review and corrective action.
Banks must include the full agency commission received on government transactions in their service tax base; instances were found where nodal branches netted commissions and currency chest branches paid service tax only on the net amounts, prompting a review of nodal bank registration and reporting to ensure correct tax liability and remedial action by field formations.
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