26 August 2014
In case of of online prepaid mobile recharge business, the company has to buy recharge credit from a 3rd party; if the company buy credit of Rs. 10,000/- then he can recharge an amount of 10,300/-, being 3% be commission. So is service tax is applicable on Rs. 300? The mobile operator has already paid the service tax on full amount of Rs. 10,300/-.
26 August 2014
As per notofication no.25/2012 serial no. 29 (f) services by a selling agent of recharge coupon vouchers are exempted from service tax.So when the services provided by him are exempt,so will be his commission income.Also i think the same view shall aplly to online mobile recharge.
CAclubindia
