- Iam doing accounts of an entity distributing vodafone Recharge coupons & E Topup having a Turnover around 3.5 Cr in Kerala.
- Vodafone is directly billing to the entity and the same is sold to retailers.
- The entity is receiving claim from Vodafone for around 3 lakh, and no TDS Is being deducted for the same.
- Sale & Purchase are shown under Kerala VAT under 0% Goods(Recharge Coupons are classified as 0% goods under Kerala VAT).
- Rs 100/- MRP Coupon is received to distributor for 94.87/- and sold to retailer for 96.00/- (Gross profit of 1.177% on Sale)
- I Would like to know whether Service tax is applicable in the given case.
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Service tax applicability on recharge coupons
Replies (2)
Commission of Dealer on sale of SIM cards not liable for Service tax : Madras High Court
Refer: https://taxheal.com/commission-of-dealer-on-sale-of-sim-cards-not-liable-for-service-tax-madras-high-court.H T M L
1. In the given situation Vodafone is service provider to customer and hence vodafone is liable to PAY Service tax on entire Rs 100.
2. Distributor as rightly done is a trader of recharge couples.
3. Trading of goods is a negative List under section 66D anf hence Service tax is not leviable.
2. Distributor as rightly done is a trader of recharge couples.
3. Trading of goods is a negative List under section 66D anf hence Service tax is not leviable.
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