Aggregate Taxable value

[Vijay Chitte]

We have to pay commission to our C&F agent @2% on net sale value i.e. net sale value is 1000000 and his commission is Rs.20000 (2%) My question is which is agreegrate taxable value of C&F agent? Is it Rs.1000000 or 20000?(commission)any one can guide me?

[Surender Gupta]

Service Tax is payable on Rs. 20,000/- only. Rs. 10,00,000 represents only value of sale and not any service.

[Guest]

It is Rs.20000/- on which service tax @12.24% (including e.cess) is payable.

[Brijesh Verma]

Dear Vijay, As you may be aware, C&F, in layman language is known as Aaratiya.These aaratiyas are of two types: Kacha and pakkaa. In case of pakkaa even income tax law guides that turnover shall include the amount of sales i.e 1000000 as in your case. however, service tax covers only those aaratiyas or c&fs who are not pakkaa. therefore feel free tax is to be paid @ 12.24% on 20000 only.

[Guest]

It is Rs 20000 only. The sales he made is on behalf of principle company only and not his sales

AI Summary

Service Tax for C&F Agent Applies Only on Rs. 20,000 Commission, Not Rs. 1,000,000 Sales Value. A discussion on a forum addressed whether the aggregate taxable value for a commission and forwarding (C&F) agent's service tax should be based on the total sales amount of Rs. 1,000,000 or the commission of Rs. 20,000. Four respondents clarified that the service tax is applicable only on the commission amount of Rs. 20,000, not the total sales value. They emphasized that service tax at a rate of 12.24% is payable on the commission, as the sales represent the principal company's value, not the agent's.