TaxTMI 
TaxTMI 
Service tax applicability on commission received
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....ervice tax applicability on commission received<br> Query (Issue) Started By: - DEV KUMAR KOTHARI Dated:- 21-12-2009 Last Reply Date:- 23-12-2009 Service Tax<br>Got 1 Reply<br>Service Tax<br>Amways- t....
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....heir dealers/ agents or franchisee are reselling goods on Amway and get profit margin as dealer woul dget depending on volumes generated by the team of any dealer. Though they show it commission, but ....
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....in fact it is margin of a trader. Whether sommission / profit earned will be subject to service or not. In case they are dealer then servicetax should not be levied. any case law on this subject and c....
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....urrent positin may be explained. Reply By Rama Krishana: The Reply: I do not agree with the view that the profit of the dealers / agents working under MLM schemes like of Amways is not a commission b....
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....ut a margin of profit. They are not only earning from direct sales from them but also get from the sale made by agents in the chain. Commission is highly dependable on performance. The marketing and p....
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....rocedure is directly under the umbrella of Amways. Though not sure, but of the view that they also do not get themselves registered with local VAT department as a dealer. So, there is no reason to tre....
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....at the profit earned by them other than commission. Service tax is fully applicable.<br> Discussion Forum - Knowledge Sharing ....