Comm on sale of sim/data card by dealer under which category

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SAURABH MODI (Querist)

28 February 2017 Dear All,

Please guide me regarding the below mentioned query:

Assessee was engaged as a dealer for selling SIM Cards and Data Cards for a Telegraph Authority, and was earning commission for the same for the FY 11-12, 12-13 and 13-14

Whether the commission income so earned in the FY 11-12 taxable under the category "Tele-Communication Services" or the category "Business Support Services".
If it is to be categorized as "Tele-Communication Service" - whether the said dealer is liable to Service Tax on the Commission Income so earned?
If it is categorised as "Business Support Service" - whether the exemption for value of goods/materials sold by the SP to the SR.

Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 February 2017 No service tax applicable on such commission as per sl.No. 29 of mega exemption notification.
https://taxguru.in/service-tax/updated-mega-exemption-notification-service-tax.html

SAURABH MODI

SAURABH MODI (Querist)

28 February 2017 Dear Seetharaman Sir, I am asking for the period 11-12, but Mega Exemption was applicable only from 01-07-2012

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 March 2017 For that period also service tax not applicable. See the link.
https://taxheal.com/commission-of-dealer-on-sale-of-sim-cards-not-liable-for-service-tax-madras-high-court.html

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