Please Help: Applicability of service tax on mobile recharge coupan distributor

Posted Date : 04-Aug-2013 , 10:39:51 pm | Posted By Kuldeep Gupta

Mr. A is a distributor of mobile recharge coupons in Jaipur. He gets Rs. 100 recharge coupon in 95 and sold it to retailers in RS. 97.
I want to know the applicability of service tax on above business in detail.
Also tell me the applicability of Raj. VAT on such transactions.
(All figures are imaginary)

Category : Service Tax | Answers : 0 | Comments : 3 | Hits : 2876

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p c bhansali

06-Aug-2013 , 01:38:42 pm

the distributors is only helping the company in their recharge facility and not providing any telecom service so the difference of rs 95 and 100 is the considerattion for services provided to telecom company on which service tax is chargeable if telecom company is charging vat in bills then vat is applicable otherwise not since recharging is not a goods