Registration liability

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 August 2012 Dear expert,
One of my client is sells sim card and flexy recharge of a telecom co. For his work company pays commission to him and deduct tds u/s 194H thereon. his commission would be around 12 to 15 per annum. Whether he is required to get service tax registration, if yes, then how to deal with turnover of FY 2011-12. And for that purpose his turnove is the commission that he got from company or amount of flexy & sim cards sold also would be count.
Please advise me.

09 August 2012 Selling per se does not involve any element of SERVICE. Commission you need to pay service tax if applicable limit is crossed by your client. (12 to 15 per month in your query does not signify thousand or lakh)

09 August 2012 Kindly reply whether 12 to 15 per annum is in terms of lacs?

If it is in lacs, kindly tell us whether the turnover includes sale of simcards also.
For service tax purpose, simcards sales will not count, as it is coming under goods which is taxable under your local VAT. Remaining amount, ie. commission if it crossed 10 lacs in last year service tax is applicable.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 August 2012 it is 12 -15 lacs per annum.

09 August 2012 service tax is applicable on this. For the intial year your client may claim the exemption for first 8 / 10 lakh as the case may be.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 August 2012 whether the service tax is applicable only on commission received or on sale of sim card and flexy also.

09 August 2012 It is applicable only for commission. Kindly go thro my earlier reply once again.

09 August 2012 Please do not get confused with 'bundled services' All the best.


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