CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
03 January 2014Helow Friends,
One of My Client is Providing Cable & Interner Services,
He is Charging 300/- per person as cable charges Monthly. he has 300 clients.
his bifurcation is as 112/- as he is paying to some cable provider (Hathway) + 45/- entertainment tax + and balance is his commission .
so please tell me is service tax applicable to him?
if Yes then on Which Amount?
plz link some notification or case law.
thanx in advance
Shivashish
(Chartered Accountant)
(2796 Points)
Replied 04 January 2014
As per my understanding cyber cafe service is exempt from levy of service tax...
CHIRAG DEEPAK GANATRA
(CA FINAL)
(1054 Points)
Replied 04 January 2014
he is not engaged in Cyber Cafe .
he is Service provider of Cable, Set top Box & Internet
CA Ankit Mittal
(Charterd Accountant)
(118 Points)
Replied 04 January 2014
Chirag,
The amount paid to Hathway and entertainment tax can be excluded from the value of service provided as it satisfies the conditions of service provided as a pure agent provided that the cable operator mentions the amount payable to hathway and as entertainment tax in his invoice/receipts.
Otherwise the service is taxable under Cable Operator Service and in first year the assessee will hjave to pay tax on the receipts of over and above Rs. 10 lakhs and on the whole amount next year onwards.
CAclubindia
