Service tax doubt

Hi! Can anyone please explain in depth and clear cut understanding of "GAMES OF CHANCE (LOTTERY SCHEME)", its conditions and with practical problem with a step by step solution. I cannot understand that one. For your reference i have given you the rate and condition. Take a look please.

Games of Chance Service [Rule 6(7C) of the Service Tax Rule, 1994]

RATE:

Rs 7000/- on every Rs 10 lakh (or part of Rs

10 lakh) of aggregate face value of lottery tickets

printed by the organising State for a draw.

CONDITION:

If the lottery scheme is one where the

guaranteed prize payout is 80% or more.

RATE:

Rs 11000/- on every Rs 10 lakh (or part of Rs

10 lakh) of aggregate face value of lottery tickets

printed by the organising State for a draw.

CONDITION:

If the lottery or lottery scheme is one where

the guaranteed prize payout is less than 80%.

Note : In case of Online Lottery, the aggregate face value of lottery tickets will be the aggregate

value of tickets Sold.

Thanx in advance. Godspeed.

Hi Deepa

First Of all i want to say u that u have allready mention clear cut defination.

lets start with the first example , suppose u r administrative of lottery tickets and u printed no. of lotteries of 1 crore of Rs. 100 each. and u have declare to distribute funds of minimum 80 lacs(80%) then u have to pay service tax Rs. 70000(Rs. 7000 for every 10 lacs) but in case u distibute fund which is less than 80 lacs then u have to pay service tax 110000(Rs. 11000 for every 10 lacs).

In case of online tickets lotteries of rs. 1 crore but u able to sell lotteries of rs, 90 lacs and u declare to distibute 72 lacs or more (80% of 90 lacs) then u have to pay service tax of rs. 63000 and if u ditribute less then 72 lacs then service tax will be rs. 99000.

I hope it will make u understand in simple way

All the best