Service tax query

Queries 509 views 1 replies

Dear Friends,

 

Does the entities like rechargeitnow.com and easymobilerecharge.com providing online mobile recharging facility are liable to pay service tax or the Telecom company will be liable to pay the tax on value of such recharges...

Would there be any service tax liability on the intermediary company considering the above facts.

Would the customers of this intermediary company can claim the benefit of service tax paid...


Thanks...

Replies (1)

Telecom companies are liable to pay service tax.

It is not the online recharge outlets, who are providing the customers with service. They are providing the service to Telecom companies. 

While billing to Telcom companies, online recharge outlets will collect service tax along with the service tax on commission (service they provided).

And similarly, telecom companies will collect service tax from the customers to whom they provided the service

 


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