Please guide me regarding the below mentioned query:
Assessee was engaged as a dealer for selling SIM Cards and Data Cards for a Telegraph Authority, and was earning commission for the same for the FY 11-12, 12-13 and 13-14
Whether the commission income so earned in the FY 11-12 taxable under the category "Tele-Communication Services" or the category "Business Support Services". If it is to be categorized as "Tele-Communication Service" - whether the said dealer is liable to Service Tax on the Commission Income so earned? If it is categorised as "Business Support Service" - whether the exemption for value of goods/materials sold by the SP to the SR.
28 February 2017
No service tax applicable on such commission as per sl.No. 29 of mega exemption notification. http://taxguru.in/service-tax/updated-mega-exemption-notification-service-tax.html
01 March 2017
For that period also service tax not applicable. See the link. http://taxheal.com/commission-of-dealer-on-sale-of-sim-cards-not-liable-for-service-tax-madras-high-court.html
CAclubindia
