I have a query for one of my client who are to set up new e commerce business.
They are like how Amazon provides e commerce aggregator.
1. Whether the commission is chargeable to Service Tax?
2. If they engage a Courier service whether the Service tax is eligible as CENVAT to be set off against the Service tax payable by on commission?
Service Tax on E-commerce Commission Confirmed; CENVAT Offset Possible for Courier Services Under Cenvat Credit Rules, 2004. An individual inquired about service tax implications for a client setting up a new e-commerce business similar to an aggregator model. The questions were whether the commission is subject to service tax and if service tax paid on courier services can be offset as CENVAT against the service tax on commission. Two respondents confirmed that the commission is chargeable to service tax and that the service tax on courier services can be set off, provided there is a proven nexus between the input and output services according to Cenvat Credit Rules, 2004. (AI Summary)
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