Dear professional colleague,
please render your valued opinion on following issues:
An assessee engaged as DSA for sale and activation of Post Paid Connection/Pre Paid Connection and selling of Sim Cards of Pre paid Connection and Recharge/E TOP UP coupons.
Billing Pattern of AIRCEL to DSA FOR PREPAID SIM CARD
Cost of Prepaid Sim - 25 Nos.
316.50
Add: Service Tax 56.68
EC 2% 1.13
SHE 1% 0.57
Rounding off 0.12
TOTAL 375.00
MRP printed on the SIM Card is as follows
Processing Fees 22.67
Service Tax and EC 2.33
MRP 25.00
In the above bill ST is charged on MRP value i.e. 25 NOs. * 22.67 *10% = 56.68
Query 1 (Prepaid Connections)
DSA sold SIM @ 15/- per card.
-
Whether distributor is liable to charge service tax @ 10.30% on Rs. 15/- i.e. 1.40 and claimed Rs. 58.38 as Input
Or
Distributor has nothing to do with Service Tax as service
tax is not attracted as ithas already been charged by
AIRCEL on MRP at first point at the billing.
-
Whether VAT is chargeable on sale of SIM Card of prepaid Connection or it is out of scope of VAT and covered in service tax only.
Query 2 (Post Paid Connections)
3. In “POST PAID CONNECTIONS” Distributor used to get various type of commission and reimbursement of some
establishment cost on which service tax
is being charged @ 10.30% on Commission bills and
reimbursement of expenses since inception without
claiming the threshold limit of Rs. 10 lac.
In my understanding an assessee assumption for not
claiming threshold limit is correct since this limit
would not be available to assesses as he is dealing in
Branded goods (AIRCEL).
Please correct my views.
CAclubindia
