Mobile refilling prepaid & postpaid dealer

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2016 Mr.X is has a Distributor Agency of refilling of Vodafoen talktime Prepaid as well as postpaid.

In case of postpaid, Mr.X is receiving Rs.100/- from customer as a postpaid Bill payment and Return back to Vodafone same Rs.100/-. At the month end Vodafone pays separate cheque of his commission after deducting TDS of Rs.3/-.

In case of prepaid, Mr X is receiving Rs.100/- from customer as a talk-time payment and return back to Vodafone only Rs.97.5/- so balance Rs.2.5/- keeps with himself as a commission.

Query:-
1. What amount to be treated as a Turnover in the books of account ?
2. At what amount Service Tax to be calculated & paid by Mr.X to Govt ?

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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09 May 2016 In case of prepaid, Rs. 2.5/- commission retain by Mr. X will be treated as his trunover of Mr. X which should be inclusive of service tax.

In case of postpaid Rs. 3/- commission paid by Vodafone to Mr. X will be treated as turnover and same should be treated as inclusive of service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2016 In case of Prepaid, ITO has considered Rs.100/- as a Turnover instead of Rs.2.5/- If you have any judgement supporting to that then kindly send me the link. Thanks a lot

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