Hi all,
i have a query regarding service tax. My query is, if we pay security deposit against new mobile post paid connection, is service tax charge by service operator? i.e if i pay Rs.300 as secutity for new connection. Is service tax will charge by operator on same Rs.300 except call charges.
Agreed with learned members above. If its non-refundable and adjustible against call charges, then service tax shall be applicable.
No, if it is a refundable security deposit, it is not taxable. However, if later on, it is adjusted against call charges then first service tax on call charges has to be levied and after that it has to be adjusted against security deposit.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
