Consider the following case:
A person is providing Cable operator service (with set top box and without set top box) and Internet connection Service.
Without set top box subscribers - He collects Rs.100 per subscriber (say Rs.100 x12mths x 600 nos = Rs.720,000.00).
With set top box subscribers - There is an SLA with a set top box company that he must collect Rs.150 (inclusive of ST) and pay them Rs.50.00 ie retaining Rs.100.00 with him (In this case, I suppose that ST is indirectly collected for the entire amount of Rs.150.00). ( say this comes to Rs.100 x 12 mths x 200 nos = Rs.240,000.00).
Internet Service - He has entered into a Revenue Sharing Agreement ( his share being 40%) with an ISP to provide Internet connection in the nearby areas. The subscriptttion charges are collected by the Company which is inclusive of Service Tax. Eg (for a year) - Rs. 17.25 lakhs is received by the ISP. Taking the ST component out, it comes to Rs.15 lakhs excl of ST. 40% on this, Rs.6 lakhs is the assessee's share of revenue in this case.
Taking all together,
Without set top box - 7.20 lakhs (ST not included)
With Set Top Box - 2.40 lakhs (ST included on the entire sum and remitted by the Company)
Internet Service - 6 lakhs (ST included on the entire sum and remitted by the ISP)
Total - 15.60 lakhs
What is his status taking all these into account?
1. Is he liable to collect ST in the case of without set top box subscribers?
2. Should his turnover taken as 15.60 lakhs or 7.20 lakhs, considering the remaining Rs.8.40 lakhs as Income instead of Turnover?
PS - I know this might be a bit confusing. Kindly help me out.,
CAclubindia
