30 October 2012
Dear all, Service tax for the distributor or selling agent of lottary services is calculated on the basis of the lottary scheme,where the 'guaranteed prize payout' is more or less than 80%.What is the meaning of the term 'guaranteed prize payout'? How do we calculate service tax for such services?
30 October 2012
selling or marketing agent of lottery tickets to a distributer or a selling agent is exempt from service tax under sub clause 29(e) of notification no. 25/2012-ST.
30 October 2012
But,Budget 2010-11 had introduced service tax levy on the services of promoting, marketing, or organising of games of chance, including lottery. Under the composition scheme, a distributor or lottery selling agent who is liable to pay service tax, can opt to pay flat service tax of Rs 6,000 on every Rs 10 lakh of aggregate face value of lottery tickets printed by the organising State for a draw. This rate will apply in those lottery schemes where the guaranteed prize payout is more than 80 per cent,
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