Lottery ticket seller

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Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2012 In case of optional composition scheme….for lottery agents, where rs.6000 should be paid on every 10lacs (or part of 10lacs) of aggrgt.face value,
In such case, if the face value of lottery tickets is much below 10lacs, then how much tax shall be levied?

CA PARTH SHAH

CA PARTH SHAH (Expert)

05 May 2012 FIRST OF ALL IN BUDGET 12-13, THE AMOUNT OF SERVICE TAX IS INCREASED FROM RS 6000 TO RS 7000.
IN THE RULES IT IS SAID THAT SERVICE TAX IS TO BE PAID @RS 7000 PER EVERY 10 LAKHS (OR PART OF 1O LAKHS) OF AGGREGATE FACE VALUE. SO EVEN IF THE FACE VALUE IS LESS THAN RS 10 LAKHS SERVICE TAX HAS TO BE PAID ON FULL 10 LAKHS I.E. RS 7000. HOWEVER THIS IS THE CASE WHEN THE GUARANTEED PRIZE PAYOUT IS MORE THAN 80%. BUT IF THE GUARANTEED PRIZE PAYOUT IS LESS THAN 80% THAN SERVICE TAX IS TO BE PAID WILL BE RS 11,OOO

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Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2012 but for may 2012, the amount is 6000/- only na??? 7000/- would be applicable for nov. is it so?

CA PARTH SHAH

CA PARTH SHAH (Expert)

06 May 2012 YA FOR MAY 12 PURPOSE IT IS 6000.

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