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?

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.