Service tax for Reseller

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Manish Jain (Querist)
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19 May 2021 I used to buy recharge in 2015-2016 through distributors of Idea,voda,Airtel and use to sell through mobile app or website,as service tax exemption was for all to distributor or agent.
Service tax not applicable too for reseller or online seller, can we get proof,old case judgement so that we can have proof to prove it...plz treat it urgent.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 For the period you mentioned (2015-2016), the applicability of service tax on mobile recharges sold through distributors, agents, or online platforms depends on specific provisions and exemptions available under the Service Tax regime at that time. Here are some key points and considerations based on general principles and historical context:

### Service Tax on Mobile Recharges:

1. **Nature of Service**: Mobile recharges were considered a taxable service under the Service Tax regime if they were provided in the course or furtherance of business.

2. **Exemptions and Thresholds**:
- There were exemptions and thresholds under the Service Tax rules that exempted small-scale service providers from paying service tax up to a certain limit (typically turnover-based exemptions).
- Exemptions also existed for specified services or service providers, but these exemptions varied over time and were subject to specific conditions.

3. **Judicial Precedents and Case Law**:
- **Service Tax Exemption for Distributors/Agents**: There were exemptions available for distributors or agents under certain circumstances, particularly where they acted as intermediaries or facilitators for services.
- **Online Resellers**: Online resellers may have been exempted or subject to specific provisions under service tax rules, depending on whether they qualified for small-scale exemptions or fell under any specified category of exemptions.

### Finding Relevant Case Law or Proof:

1. **Legal Reference**: To find specific case laws or judgments from that period, you would typically refer to decisions by appellate authorities like the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) or High Courts.

2. **Documentation**: Since specific case laws from that exact period may vary, it is advisable to consult with a tax consultant or legal expert who can access legal databases or archives to find relevant precedents.

3. **Historical Notifications**: Review historical notifications and circulars issued by the Central Board of Indirect Taxes and Customs (CBIC) that outline exemptions or clarifications related to service tax on mobile recharges during 2015-2016.

### Urgency and Next Steps:

- **Consultation**: Due to the urgency and specific nature of your query, consulting with a tax expert who specializes in indirect taxes and has access to legal resources would be beneficial.

- **Documentation Gathering**: Gather all relevant documents, invoices, agreements, and any correspondence related to service tax exemptions or transactions during that period.

- **Legal Opinion**: Seek a legal opinion based on the specific facts of your case and the documentation available to determine the applicability of service tax exemptions to your business activities.

By taking these steps and seeking professional advice, you can better understand the applicability of service tax exemptions and any potential case laws that support your position regarding mobile recharge transactions during the period of 2015-2016.