Taxablity of comission recived on activation of dth
This query is : Resolved
15 June 2013
Dear Sir,
Commission Received on DTH Activation and Selling of Currency liable for service tax ?
Please provide detailed info and reference if any
Thanks In Advance
Commission Received on DTH Activation and Selling of Currency liable for service tax ?
Please provide detailed info and reference if any
Thanks In Advance
15 June 2013
Both are taxable services.
17 June 2013
sir,
But came in Mega Exemption notification 25/2012 the commission on selling of sim card and recharge coupons not liable for service tax
my doubt is same is applicable for DTH currencies also ?
Thanks In Advance
But came in Mega Exemption notification 25/2012 the commission on selling of sim card and recharge coupons not liable for service tax
my doubt is same is applicable for DTH currencies also ?
Thanks In Advance
17 June 2013
If services are covered under the mega exemption notification then no need to pay service tax. other than 25/2012-ST are taxable service.
17 June 2013
Sir,
in notification mentioned only about SIM Card & Recharge coupons but not DTH therefore my doubt is Commission received on DTH Activation & Sale of currency of DTH fall with in the meaning of SIM Card and Recharge Coupons
in notification mentioned only about SIM Card & Recharge coupons but not DTH therefore my doubt is Commission received on DTH Activation & Sale of currency of DTH fall with in the meaning of SIM Card and Recharge Coupons
17 June 2013
Sir,
in notification mentioned only about SIM Card & Recharge coupons but not DTH therefore my doubt is Commission received on DTH Activation & Sale of currency of DTH fall with in the meaning of SIM Card and Recharge Coupons
in notification mentioned only about SIM Card & Recharge coupons but not DTH therefore my doubt is Commission received on DTH Activation & Sale of currency of DTH fall with in the meaning of SIM Card and Recharge Coupons
26 July 2025
Good question! Here’s a detailed explanation on the **taxability of commission received on DTH activation and sale of DTH currency** under service tax law (pre-GST era):
---
### 1. **Mega Exemption Notification 25/2012-ST**
* This notification specifically exempts **commission on sale of SIM cards and recharge coupons** from service tax.
* The exemption is **limited only to telecom SIM cards and recharge coupons**.
### 2. **Does the exemption apply to DTH activation commission and DTH currency sale?**
* **No, the exemption does not cover DTH services** or sale of DTH currency (top-ups).
* The notification explicitly mentions only SIM cards and recharge coupons related to telecom services.
* DTH activation and sale of DTH currency are **distinct services** and **not covered** under the telecom exemption.
### 3. **Taxability of Commission on DTH Activation & DTH Currency Sale**
* Commission earned on **activation of DTH services** is treated as a consideration for providing a service.
* Similarly, commission on **sale of DTH currency (top-up cards or electronic vouchers)** is a service income.
* Therefore, **both are taxable under service tax** as per the classification of services.
### 4. **Relevant Service Tax Heads**
* **DTH activation commission** would typically fall under **“Telecommunication Service”** or possibly **“Business Auxiliary Services”** depending on the contractual arrangement.
* **Sale of DTH currency commission** may also be covered under **“Business Auxiliary Services”** or specific service classification relevant to prepaid recharge.
---
### Summary Table:
| Service | Exempt under Mega Notification 25/2012? | Taxability |
| -------------------------------------- | --------------------------------------- | ---------- |
| Commission on sale of SIM cards | Yes | Exempt |
| Commission on sale of recharge coupons | Yes | Exempt |
| Commission on DTH activation | No | Taxable |
| Commission on sale of DTH currency | No | Taxable |
---
### References:
* Mega Exemption Notification No. 25/2012-ST dated 20.6.2012 (covers SIM card & recharge coupons only)
* Service Tax Laws pre-GST regime
* CBEC Circulars on telecommunication service tax
---
If you want, I can help draft a formal legal opinion or assist with relevant service tax codes for compliance. Would you like that?
---
### 1. **Mega Exemption Notification 25/2012-ST**
* This notification specifically exempts **commission on sale of SIM cards and recharge coupons** from service tax.
* The exemption is **limited only to telecom SIM cards and recharge coupons**.
### 2. **Does the exemption apply to DTH activation commission and DTH currency sale?**
* **No, the exemption does not cover DTH services** or sale of DTH currency (top-ups).
* The notification explicitly mentions only SIM cards and recharge coupons related to telecom services.
* DTH activation and sale of DTH currency are **distinct services** and **not covered** under the telecom exemption.
### 3. **Taxability of Commission on DTH Activation & DTH Currency Sale**
* Commission earned on **activation of DTH services** is treated as a consideration for providing a service.
* Similarly, commission on **sale of DTH currency (top-up cards or electronic vouchers)** is a service income.
* Therefore, **both are taxable under service tax** as per the classification of services.
### 4. **Relevant Service Tax Heads**
* **DTH activation commission** would typically fall under **“Telecommunication Service”** or possibly **“Business Auxiliary Services”** depending on the contractual arrangement.
* **Sale of DTH currency commission** may also be covered under **“Business Auxiliary Services”** or specific service classification relevant to prepaid recharge.
---
### Summary Table:
| Service | Exempt under Mega Notification 25/2012? | Taxability |
| -------------------------------------- | --------------------------------------- | ---------- |
| Commission on sale of SIM cards | Yes | Exempt |
| Commission on sale of recharge coupons | Yes | Exempt |
| Commission on DTH activation | No | Taxable |
| Commission on sale of DTH currency | No | Taxable |
---
### References:
* Mega Exemption Notification No. 25/2012-ST dated 20.6.2012 (covers SIM card & recharge coupons only)
* Service Tax Laws pre-GST regime
* CBEC Circulars on telecommunication service tax
---
If you want, I can help draft a formal legal opinion or assist with relevant service tax codes for compliance. Would you like that?
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