service tax liability on petrol pump commission

[Hariharan Sundaram]

Dear Experts, pl guide me what is the service tax liability on petrol pump dealer commission. Some of them having the opinion that only corporation owned corporation operated (COCO) commission alone liable to service tax. It is also argued by the petrol pump dealers, for dealer owned dealer operated petro pumps (DODO) that it is only purchase and sales and stating that what they receive is profit of sale and not commission. and no service tax. which is correct? However the oil company is deducting TDS on the amount paid to dealers . Kindly give your expert opinion

[YAGAY andSUN]

Please check following link

http://cenexbhavnagar.nic.in/OIO/ADDITIONAL%20COMMISSIONER/2012-13/39-ADC-BVR-2012-13.PDF

[KASTURI SETHI]

Sh.Hariharan Sundaram Ji,

The OIO referred to by M/s.YAGAY AND SUN, SIRS, clearly covers your issue. I support the views of M/s.YAGAY AND SUN, Sirs. No mention of this party in EXCUS. Thus it can be inferred that the party has accepted the OIO.

[Hariharan Sundaram]

Can anybody give the copy of the letter F.No. V/DGST/BAS - 189/2011 dated 05.04.2011 mentioned in the above order passed by the Additional Commissioner Bhavnagar please?

[YAGAY andSUN]

Sorry could not find it.

AI Summary

Service Tax Debate on Petrol Pump Dealer Commissions: COCO Liable, DODO Exempt? Clarification Sought on Order. A forum participant inquired about the service tax liability on commissions received by petrol pump dealers, specifically distinguishing between corporation-owned (COCO) and dealer-owned (DODO) operations. Some argue that only COCO commissions are liable for service tax, while DODO operations are considered sales, not services, thus exempt. Despite this, oil companies are deducting TDS on payments to dealers. A respondent referenced an official order (OIO) supporting the tax liability, but a requested document related to the order could not be located. Participants sought expert opinions and document clarification on the matter.