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Service tax or vat is applicable?

CA Student (proprietor) (40 Points)

31 December 2016

My client is telephone recharge distributor. His turnover is about 50 lakhs. Which tax is applicable for him service tax or vat..???

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8 Replies

ankita gandhi (student) (5908 Points)
Replied 31 December 2016

Service tax

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CA Student (proprietor) (40 Points)
Replied 31 December 2016

Are you sure

Ashoka G (Student CA IPC / IPCC) (115 Points)
Replied 31 December 2016

Service tax shall be applicable only on commission, but exemption is given under notification no.25/2012 ST serial number 29.

Ashoka G (Student CA IPC / IPCC) (115 Points)
Replied 31 December 2016

Since the recharge cards were not considered as goods, VAT will not be applicable.

Ashoka G (Student CA IPC / IPCC) (115 Points)
Replied 31 December 2016

Usually Service tax will be paid by service providers on 100% value including commission to be on the safer side. Some service providers will pay on amount except commission. This was held in the case of tata telecommunications vs CCE and decision was in the favor of tata telecommunications and it was informed that ST could be payable on gross amount charged to distributors.