confusion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 Please read my query and don't get bored..sirs..pls...!!!

I have registered under business auxilary service as vodafone dealer last year May'2010.
Company is issuing us invoice cum delivery challan cum receipt ok. invoice contain recharge coupans/vouchers which are including service tax. now lets take example of it.
suppose mrp of voucher is Rs.30 i have received qty of 800 coupans ok..now what its gross amt. will be rs. 24000/- right. but company is giving 4% comission to us so they will less the amt. with rs. 960 ( 24000*4%)ok so bill will be rs. 23040 ( 24000-960){ 2560 procession fee + 18240 cairtime charge + 2240 service tax}

now what i do is, i give my retailer 2% commission means i give 800 coupan @30 Rs. in Rs. 23520/-

now my confusion is that which t.o I have to take all 23520/- or only 480/- commission.

when i have taken a t.o. of 480/- and going to file a nil return then dept. says you have to pay service tax..!!!

I don't understand company is already paid s.t and i have only received rs. 480/- so from which corner i have to pay s.t. ???

What to Do ?
If i take t.o of the Rs. 23040/- my gross t.o would be crossed Rs. 10 lacs exemption limit..then what to do ??

Please give me your valuable suggestion service tax experts...

thanks

U S Sharma

U S Sharma (Expert)
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15 May 2011 cancel your service tax registration

as on recharge vouchers company pays service tax and you dont have to pay anything

480 is your business profit, its not commission.

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 thanks sir,

if i cancelled will vodafone company take objection ? bcs they give dealership only if i have service tax registration.

when i take vodafone agency company forced me to take service tax no. to work with us.

or if i cancelled registration dept. will not take any action that i have not filed s.t. return for both april to sept'10 & oct'10 to mar'11, dept. has not accepted both times inspite of saying pay service tax.

thanks sir....again...

U S Sharma

U S Sharma (Expert)
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15 May 2011 no
the service tax component is paid by vodaphone, so u dont have to pay double

file all "nil" returns, no penalty is leviable

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 thank you sir,
there is no need to take permission to file online s.t return or not ?

if yes/no, in which (exemption) notification i have to write in return (st3)? and which amount (Rs 23040 or Rs 480) I have to considered for return ?

and finally which category I have to follow, is this business auxilary service or not ?

thank you very much sir
If possible please give reply sir..

U S Sharma

U S Sharma (Expert)
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15 May 2011 you are not providing any taxable service, neither on recharge coupan (against recharge coupan, the services are provided by vodaphone, so they are liable to pay service tax which is paid already)

480 is your business profit, generated from trading of vouchers, so its not commission, as against this profit your establishment cost, power, manpower etc are used.

your ST return would be NIL at all places,

to submit the return you dont have to pay any penalty, better use ACES for online filing so that u dont have to argue with department.

if department object, then take a print out of the page from below

http://arxadvisors.com/userfiles/Instruction%20Letter-137-58-2007.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2011 thanks a lot sir,

please give me exemption notification.

Do i have to tick service receiver or provider ?

only amount of business profit total (480) reflect on it...??

U S Sharma

U S Sharma (Expert)
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15 May 2011 your total return would be NIL
nothing to be filled in any column, except date and place,

official circular was already attached to your previous scrap however once again posting

http://arxadvisors.com/userfiles/Instruction%20Letter-137-58-2007.pdf

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