exemption notification for business auxilary services

This query is : Resolved

Sowmya.S.Balan

Sowmya.S.Balan (Querist)
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01 May 2011 Dear Sirs,

In our case we are selling recharge coupons. We take registration for business auxilary services. We buy recharge coupons from uninor. Our income is only the commission that is the difference between the sale price & purchase price. In uninor,s bill they collect service tax from our part. We collect the same service tax from our customers. In our ST - 3 We show the sale price of recharge coupons excluding service tax as gross value against service provided. Purchase price of recharge coupons shown as value of exempted service and the balance is shown as taxable value of service provided. But our return is rejected because for showing any amount under exempted services the exemption notification no is shown. Which exemption notification can be shown ? or how to fill our return. Please help me its very urgent

U S Sharma

U S Sharma (Expert)
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15 May 2011 total process is wrong

you are not a service provider of recharge coupans sold.

as uninor is service provider, they have to pay service tax on their voucher sold / handovered to you as the service is to be provided by them only.

you have to sell them at diff outlets/ individuals and they are now direct to uninor for their services.

any sum retained by you towards this process is business profit of yourself, and that carry no service tax.

your returns would remain as NIL for service tax.

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