Mobile Prepaid Card Selling margin liability

This query is : Resolved 

04 March 2010 my client is selling the perpaid card of mobiles where it card to Sell for Rs. 100 and the company sell the same to that agent for Rs.95

So here on the margin of Rs.5 Per Card, is my client will be Chargeable for Service Tax...?

Kindly explain the arguing Logic, if any to talk with the authorities for the same.

07 March 2010 Your client would be liable for paying service tax on Rs 5 which he receives for distribution/promotion of sales which comes under Business Auxiliary Service.




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