SERVICE TAX

[YOGESH KUMAR]

DEAR SIR,

I AM A AIR TICKET AGENT I AM PURCHASE TICKET DIRECT AIRLINE AND SALE UNDER AGENT MY ROLL MIDEATER THE AIR LINE COMPANY DEDUCT SERVICE TAX ON COMMISSION SUPPOSE MY COMMISSON 100 RS COMPANY PAY 85 ONLY I AM PAY SERVICE TAX IN RECEIVED DEPOSITE INCENTIVE IN AIRLINE MY YEARLY INCENTIVE 1500000/- I PAY SERVICE TAX AND I WANT TO CLAIM SERVICES TAX DEDUCT COMMISSION PLEASE TELL ME.

[Ganeshan Kalyani]

Sir, if the commission amount has suffered tax once then the same cannot be considered for payment of service tax. When you say that only eighty five rupees out of hundred you have received then service tax would have been paid. However I i welcome views of other experts. Thanks.

[Ganeshan Kalyani]

Sir, looking into the amount involved, I would strongly suggest to get written opinion from a good consultant either from this Forum or of your choice. Thanks

[Ganeshan Kalyani]

Sir, the CESTAT CHANDIGARH - Service Tax in the case of CCE, Ludhina Versus Airtech Refrigeration2016 (8) TMI 245 - CESTAT CHANDIGARHit is held that an activity of purchase and sale of SIM card belonging to BSNL where BSNL has discharged the Service Tax on the full value of the SIM cards, does not amount to providing business auxiliary services and confirmation of demand on the distributors for the second time is not called for - Decided in favor of appellant.

You may go through the above citation. Thanks.

[KASTURI SETHI]

I concur with all the views of Sh.Ganeshan Kalyani, Sir. The essence of all these opinions in simple words is that Service Tax cannot be charged twice on the same consideration. Only proof is required that once ST has been paid. Pl. follow the advice of Sh.Ganeshan Kalyani, Sir regarding examination of your documents by an Advocate/CA/Consultant.

[JSW CEMENTLIMITED]

Sir,

Since, Service tax has already been paid by Airline for the commission paid to you, service tax payment once again on the same amount need not be paid. But, you should keep the documents evidencing payment of service tax in order to avoid any litigation in the event of audit of your accounts

[Ganeshan Kalyani]

Sir, may I request you to please elaborate the type of documents that need to be kept ready to get through Audit in such cases. Thanks.

[JSW CEMENTLIMITED]

Since stay has been deducted and paid by railways from the commission payable, the document evidencing such deduction and payment of stay needs to be kept.

AI Summary

Service tax double charging avoided where tax on commission already discharged; retain proof of deduction to contest re demand.
Where an airline has deducted and remitted service tax on commission payable to an air ticket agent, the agent is not required to pay service tax again on the same commission; the key requirement is documentary proof that the airline discharged the tax. Retain evidence of deduction and payment to defend against audits or re demands and consider obtaining a professional opinion when facts or amounts merit further examination.