13 May 2013
Our company is providing mobile/DTH recharges by purchasing from main company i.e. Vodafone, BSNL, Idea. and distributes to the distributors, retailers. Meanwhile our company is performing as a intermediary. If suppose on the recharge of Rs. 100 company is getting Rs. 3 of commission after deduction of TDS then What will be amount of Taxable service ? (a)Rs. 100 (b)Rs. 3 Please reply...!
13 May 2013
In this case, you need not have to pay service tax. Generally all the telecom companies and DTH operators are paying service tax on Rs. 100/- recharge value.