Service tax or value added tax

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Any one Please Suggest me,

We were in Advertising Industry. We purchase vouchers (like big bazar vouchers by using of which someone could purchase from the Big Bazar), and we will hand over the same to our client. For doing the same we will charge our servic charge. so while doing the bill, whether we have to do the service tax bill for our service charges and for value of voucher sales Tax bill same or we have to do the Sales Tax bill (by considering the same as sale of Printed Material). What we thought that we will include our charges as profit on the sale of material and do the bill. Please suggest us whether we are correct.

Shashidhar

      

Replies (3)

 in my openion  if you clubing the value of voucher in the clients bill   then service tax is applicable.  Other then service If you in the business of  pucrchase and sale of voucher then sale tax applicable. Plese clrify in deatail you giving services to your clients or  seprate sale?

Thanks for your reply.

Even though we are the advertising agency, we are also having Sales Tax Registration, as we undertake the designing and selling of Brouchers, Prospectus etc. work. When we purchase the Big Bazar vouchers they wont charge us any sales Tax, they are telling that, only goods purchased from such vouchers are subject to Tax and not the voucher. But we are not puchasing the same for our sake but for the sake of our client, which they will distribute to their client.  

big bazar vouchers are like the bearer cheques, and it allows only money movement, not the goods, so the actual transaction is placed only when the goods are sold by big bazar, not at the time of "transfer of vouchers"

vouchers may lapse and can be re-issed subject to their terms and conditions, but tax would be charged only when the goods are sold ( against the voucher or cash as the case may be)

its business promotion expenses for your client, not the purchase, and for your turnover its mere transfer of vouchers 

any commission you charge apart from the amount you have paid to BB, would be subject to service tax, 

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