Rule 6(7C) of the Service Tax Rules, 1994-->> Promotion or marketing etc. of lottery-- Optional composite payment.
- Instead of paying tax @ 12%(Sec.66 rate) assessee may opt to pay tax at the following composite rates.
- Option to be exercised within a period of one month from the begining of the financial year[i.e. April, 30th]... In case of new service provider, the option shall be exercised within one month of providing taxable services.
- Option Not to be withdrawn during the remaining part of the financial year.
| No. | Case | Service Tax (as amended w.e.f. 1-4-2012) |
| 1. | If the lottery or lottery scheme is one where the guranteed prize payout is more than 80% | Rs.7,000/- on every Rs.10 Lakh (or part of Rs.10 Lakh) of "aggergate face value of lottery tickets" printed by the organising State for a draw. |
| 2. | If the lottery or lottery scheme is one where the guranteed prize payout is less than 80% | Rs.11,000/- on every Rs.10 Lakh (or part of Rs.10 Lakh) of "aggergate face value of lottery tickets" printed by the organising State for a draw. |
Note-> In case of online lottery, the aggregate face value of lottery tickets shall be taken as the aggregate value of tickets sold.
Thanks & Regards
Vipul jain
CAclubindia
