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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 Dear Sir,
In case of a mobile recharge retailer whose anual commission received from mobile company around 15 to 16 lacs. Whether he is liable to obtain service tax registration and pay service tax.
or
He is not liable, as service tax is being paid by principal company (Suppose customer recharged for Rs. 100/- but he gets value of Rs 85 to Rs. 86 after deduction of service tax).
Please clarify.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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05 July 2013 The service tax on mobile recharge is payable by the mobile operators and hence the retailer need not pay the service tax again on that. But when he earns commission of more than 10 lacs in a year, he has to register himself under the service tax act and comply the provisions thereon.

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 In the above case just registration is sufficient or he is also liable to pay service tax. And what is the way to charge service tax from the customers who recharges with only 50/- to 100/-.

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CA Raju Sinha

CA Raju Sinha (Expert)
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05 July 2013 Dear
What ever a mobile recharge retailer gets from mobile company is difference of Purchase n sale price, not in d mode of commission ( you may confirm it by checking whether TDS is deducted or not). So far as service tax registration matter is concerned , no service tax registration is required ....

CA Raju Sinha

CA Raju Sinha (Expert)
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05 July 2013 Dear

Charging Service tax from customer by retailer would lead to levy of service tax twice on same transaction as customer gets balance after deducting of service tax amount from recharge value...

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 Actually company is deducting tds u/s 194 H.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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06 July 2013 Commission received by service provider is taxable service. You need to pay service tax after SSI exemption limit.

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2013 Whether it would not be the double taxation?

One which is being paid by customer
and
Second which will be paid by retailer on his commission.

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