TaxTMI 
TaxTMI 
Aggregate Taxable value
15 May 2006 
4 Replies 
1595 Views Asked by
Aggregate taxable value: commission for C&F agents forms taxable value, with service tax applicable on commission only.
Service tax is payable on the C&F agent's commission only, not on the principal's gross sales, because the agent sells on behalf of the principal; the service tax rate (including cesses) applies to the commission. A distinction is noted between pakkaa and non-pakka C&F arrangements, with service tax applying to non-pakka agents' commission. (AI Summary)
Service tax is payable on the C&F agent's commission only, not on the principal's gross sales, because the agent sells on behalf of the principal; the service tax rate (including cesses) applies to the commission. A distinction is noted between pakkaa and non-pakka C&F arrangements, with service tax applying to non-pakka agents' commission. (AI Summary)
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?