service tax - pure agent

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Dear Sirs,
We are purchasing recharge coupons from uninor & sale the same through retailers. WE got retail commission from uninor after deducting income tax TDS & we pay the net amount i.e. after deducting TDS to retailers.
Whether we have to collect service tax on the whole retail commission or the net amount (difference between retail commission received from Uninor & retail commission paid to retailers). Whether we can claim retail commission paid as pure agent service

Replies (7)

No pure agency is not applicable in your case....

Even I wonder how to pay in your case.... Lets see if we can get anymore replies

When ever we recharge through a retail outlet the balance we get is always after dedution of service tax. So i think the liability is discharged by the company itself though not sure on how legally it works
 

Originally posted by : praveen

When ever we recharge through a retail outlet the balance we get is always after dedution of service tax. So i think the liability is discharged by the company itself though not sure on how legally it works
 

agree with the reply

Pure agent services are not taxable for service provider. On billing service provider charging customer for pure agent services , but not service tax. Virtually, service provider passing on service charges and service tax to the customer(recipient).

Since service provider not taking any credit, will that credit available to Recipient? Like in excise a dealer passing on CVD to the buyer/Manufacturer?

Learned member pls suggest.

Hi Sowmya...

In your case, there is no taxable event of service involved as you are buying and selling the recharge coupons and not provided any service to either your subsequent seller or end user of the coupons.

Hence service tax will attract your trade and hence there is no question of araising Pure Agent charges.

If my understanding of the issue is wrong, pls let me clearly understatnd the issue to provide accurate clarification.

Your CMA. PRASAD...

Dear Sowmya Service tax is exempted in u r case vide entry 29 of mega exemption notification no. 25/2012.

can a pure agent paid service tax to govt on behalf of service receiver in his own name.


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