Taxability vat/service tax on sale of gift voucher

This query is : Resolved

CA SUDHIR GOYAL (GOYAL K & CO) (Querist)
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18 January 2016 Dear Expert,
Kindly assist me on following issue:

Suppose an agent purchases gift vouchers (multipurpose voucher) having value of Rs. 2000 each from Flipkart @ Rs.1800 and sold the same to company at @ Rs. 1900. Company distribute those gift voucher having value of Rs. 2000 each to its employee on some occasion and The gift voucher gives right to employees to claim them at Flipkart.com for shopping value of Rs. 2000 for any goods/services.

Now my query is,
1.What would be the taxability of tax (service tax/ VAT) on agent hands who earn Rs. 100 margin ?.

2. Further, Agent do not disclose the margin money to customer hence how to invoice the same to customers ?

Thanks in Advances !

Nilesh

Nilesh (Expert)
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19 March 2016 Service tax would not be applicable on such vouchers

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