LEVY OF SERBVICE TAX ON THE COMMISSION EARNED FROM BSNL/MTNL COLLECTION OF TRC BILLS

The service tax rules stipulates that any agency service rendered on behalf of another organisation or body attracts service tax on such commission earned by the service provider. As such all the Postmasters of Kurnool Division are directed to collect service tax and education cess @ 12.24% on total commission realized / earned   for the day may be deducted daily form the TRC collection before remitting the amount to BSNL/MTNL

Source : R.O Letter No. BD/6-283/S.Tax/19-10 dated 19-4-2012