Service tax applicability on commission on surety bond

[Ganeshan Kalyani]

Dear Sir,

I would like to have clarification regarding service tax applicability on commission income received for giving surety bond.

Secondly, as a service provider whether booking of receivable is the point where service tax to be discharged or receipt of income is the point of tax to be discharged to government treasury.

kindly clarify.

regards,

ganeshan

AI Summary

Service Tax Applies to Commission Income on Surety Bonds; Taxable at Booking or Income Receipt? A user inquired about the applicability of service tax on commission income from providing a surety bond and whether the tax should be discharged at the point of booking receivables or upon receipt of income. The response indicated that the commission is taxable as it is an activity for consideration not included in the negative list or exempted. For further details on the point of taxation, the respondent suggested reading an article on the topic.