Charge of Service tax

[Asish Kumar Nath]

We are a trading unit proprietorship company. we are register with service tax. 

In some cases we paid commission to some individuals or company against sales and in some cases we also received commission  on sales also.

Now my question in 1st case shall we charges service tax on commission on sales and deposit it to govt. a/c?

In 2nd case where we receive the commission shall we calculate service tax and deposit to govt. a/c?

As per my knowledge service tax is exampted upto 10 lakhs servisable turnover. If it is correct how we concider the rule in our cases. We paid maximum Rs4 lakhs as commission and receive maximum 1 lakhs in a year.

Please help me in this matter.

Asish Kumar Nath

AI Summary

Service tax exemption for small taxable turnover shields commission recipients from tax when turnover is below the threshold.
Commission received constitutes a taxable service and counts toward the recipient's taxable-service turnover; if that turnover falls within the Rs. 10 lakh exemption, no service tax is payable. Commission paid is not taxable in the hands of the payer; liability to pay service tax rests with the recipient, and a trader's goods turnover does not affect the small service exemption.