Commision on sales

[KALYAN CHAUDHARY]

Hi,

We have booked the foreign commission on dated 31.03.12 and write off in the month of april,2012 (next financial year) then service tax applicable or not ? pleae reply, it is very urgent.

With Regards

Vipan Kumar

[YAGAY andSUN]

Service tax was payable on this activity by 31-03-2013 (provided if you had not applied for exemption).  Furhter, you may adjust this amount without any limit in the next financial year.

AI Summary

Service tax liability on foreign commission may be payable by the end of the relevant year; adjustment allowed thereafter. Advisory: where foreign commission booked on 31-03-2012 is written off in the next financial year, service tax was payable by 31-03-2013 if no exemption was sought; the tax amount may be adjusted in the following financial year without any limit.