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Service tax applicability on recharge coupons

Queries 846 views 2 replies

Variant

Freelancer

21 Points Posted on 02 April 2017

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.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211705 Points Posted on 02 April 2017

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

Peter

Article Assistant

118 Points Posted on 03 April 2017

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.