commission earned under Brand Name

[satbir singhwahi]

commission is received from Omax Ltd ( brand name) .so basic exemption not available.Registration under service tax taken . But during 2013-14 the commission receipts are ₹ 560500( non brand from sale/purchase of land.) only . During 2014-15 Rs 220000 cpmmission from Omax Ltd (Brand Name) and commission from non brand name from sale/purchase of land ₹ 450500.

1. Whether service tax on only ₹ 220000 to be deposited.

2. whether 450500 will be exempt.

[Rajagopalan Ranganathan]

Sir,

The amount paid to the brand owner, that is, in your case Omax limited alone is covered by Intellectual Property Right Service (IPR Service). Therefore you are liable to pay service tax only on ₹ 2,20,000/-. since ₹ 4,50,000/- is commission paid in respect of non-brand name. it is not chargeable to service tax under IPR Service. However in respect of ₹ 4,50,000/- the service provider may be required to pay service tax on commission agent service.

[DR.MARIAPPAN GOVINDARAJAN]

Very good clarification,Sir,

[PAWAN KUMAR]

Dear Sir,

The reply of Sh.Rajagopalan Ranganathan sir is correct.

[satbir singhwahi]

Thks for the reply Sir.

This commission is for Sale / Purchase of Land deals as agent.

AI Summary

Intellectual Property Right Service: commission paid to a brand owner is taxable; non brand agent commissions taxed under agent service. Commission paid to the brand owner is chargeable as Intellectual Property Right Service and subject to service tax; commission for non brand sale/purchase of land is not chargeable under IPR Service but may be taxable as a Commission Agent Service, requiring assessment of service tax liability and compliance.