Rachit (CA) (36 Points)
03 January 2011There is One dealer of Recharge talk time of (recharge in Value + commission + service tax) various cellular company. As he received recharge value from cellular co with service tax, when dealer transfer such value to retailer, is he liable to collect service tax from retailer? dealer get commission for such transfer.
Vivek Raju P
(Manager)
(614 Points)
Replied 03 January 2011
yes the dealer will collect the service tax from the retailer on the distribution of recharges. The comission in these cases is based on the discount given on the MRP to the dealer. Ex : Rs 100 Recharge is sold to the dealer for say 95 and he will sell to retailer for 98 and retailer will sell to end customer for rs 100.
vardhaman
(Employee)
(22 Points)
Replied 16 December 2013
Hi,
Can any one clarify in detail.
One of my Client have only Balances he distribute to Retailer through software can he liable for service tax, If liable then under which services whether business auxiliary services or any other
For Exmaple:- He Purchase Rs.10000/- Balance and Distribute to various customer for value Rs.11000/- means he recd Rs.1000/- as a commission
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