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Service Tax on Discount Coupons.

Queries 2571 views 7 replies

"A" sells discount coupons of a retail shop to customers for Rs 500/- per coupon.

Retailer permits "A" to sell the coupons and permits him to keep the money. 

Benefit to Retailer : increased footfall in the retail outlet in guise of discount coupons.

 

Kindly put some light on the imposition of service tax on "A" if any. ( presuming he is promoting the business of retailer).

 

Replies (7)

As per my view, I think service tax will not be applicable in this case..

Agree with with Pinky agarwal

I also agree to some extent that no ST is applicable.

But kindly give reasons why is it nt applicable. Just a brief thought would do.

 

Thanks

when such transactions take place then the coupon seller is active part of the company , or business associate, coz nobody from outside can offer the discount on the products of any establishment unless having an association with it.

 

there must be some reverse of interest direct or indirect way to the A, without which A would have to face troubles in incometax and vat department,

 

however discount coupons are direct way sale and it does not entertain any part of sale of services, so no service tax applicable.  

Mr. Jeevesh,

In the instant case retailer pays sales tax on the sale of items. Once the Sales tax is paid on the value of items at which they are sold to ultimate customers, no further liability survived in relation to any service.

'A' could be charged for BAS if he is engaged in promotion of sale or service of retailer.

Transction between A and retailer were on principal to principal basis.

Service tax will not applicable 

 

Regards

Prasad G K

Agree with all Experts..

What about the VAT implication on sale of Voucher book??


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