Service tax on sale of prepaid mobile phone vouchers
This query is : Resolved
08 September 2008
Dear Experts,
One of my clients is doing business of selling prepaid mobile phone vouchers. The MRP mentioned in the voucher is inclusive of service tax. The purchase bill value is inclusive of service tax of the MRP. That is the difference between the MRP AND PURCHASE BILL is only the fixed percentage of commission.
For example,
MRP–(Price Rs.100 + S.Tax Rs.12.36) - 112.36
Less:Purchase Price(Rs.90+ST Rs.12.36) - 102.36
(here the st is on Rs.100) ---------
Profit ( ie. Commission ) - 10.00
---------
My Query is whether any service tax is again payable on commission amount of Rs.10? How half yearly return is to be filed ie whether Nil return?
Thanks in advance
One of my clients is doing business of selling prepaid mobile phone vouchers. The MRP mentioned in the voucher is inclusive of service tax. The purchase bill value is inclusive of service tax of the MRP. That is the difference between the MRP AND PURCHASE BILL is only the fixed percentage of commission.
For example,
MRP–(Price Rs.100 + S.Tax Rs.12.36) - 112.36
Less:Purchase Price(Rs.90+ST Rs.12.36) - 102.36
(here the st is on Rs.100) ---------
Profit ( ie. Commission ) - 10.00
---------
My Query is whether any service tax is again payable on commission amount of Rs.10? How half yearly return is to be filed ie whether Nil return?
Thanks in advance
09 September 2008
Please speak your turnover first.
Secondly,the prepaid card selling is not any service so it does not seem case of service tax
Secondly,the prepaid card selling is not any service so it does not seem case of service tax
09 September 2008
Thanks for ur reply. Turnover will exceed Rs.10 lacs. I am sure that service tax is charged by the main dealer as in the example given. Service tax registration has been made under business auxiliarry services after consulting with the department people. Even in prepaid card also we can see that the price is inclusive of st. Can anyone help me in resloving this query?
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