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

AI Summary

Service tax liability on petrol pump commission: whether dealer receipts are commission subject to service tax or sale profits exempt.
Service tax liability is queried for commissions paid to petrol pump dealers, with COCO commissions treated as taxable by some while dealers operating DODO assert receipts are sale profit not commission; an administrative order (OIO) and a referenced departmental letter are cited as addressing treatment, but practitioners note lack of explicit excise circular mention and continued TDS deduction by oil companies.