Is service tax applicable on mobile recharge?
Distributors not liable to pay Service Tax on Recharge Coupons received from DTH Operators: CESTAT [Read Order] The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that service tax cannot be levied on recharge coupons received from DTH operators.
Is service tax deducted?
Service tax cannot be deducted from the income tax payable by an assessee. However, the cost of any service availed of for business is considered a deductible expense as ‘Income from business or profession’.
Is service tax applicable on commission?
Distributors receive commission from mutual fund for providing services relating to purchase and sale of Mutual fund units. Services provided by such distributors are in the nature of commission agent and are, thus, liable to service tax under business auxiliary service [section 65(105)(zzb)].
What is the GST treatment on a mobile recharge business from a company to a distributor and retailer?
96*18% of GST. But for distributor and Retailer has no clue how to deduct and get tax credit. Another thing for Goods the Retailer will collect the entire tax from the End Consumer and pay the tax. But in recharge the Company is collecting the 96%(Base price amount from the retailer at the time of Recharge).
How much is mobile load tax in Pakistan?
It must be mentioned here that 12.5% withholding tax and 19.5% FED is still applicable as before and will be deducted from mobile card recharge as usual. Also to note, 12.5 percent withholding tax is not deducted in Gilgit and Baltistan, and hence any card loads there will get full Rs.
Who is exempt from service tax?
Small service providers whose total turnover value of all taxable services provided by them is not more than Rs 10 lakhs over the course of a financial year are eligible to avail of service tax exemptions.
How is service tax calculated on a flat?
Computation of Service Tax on Under Construction Property So Service Tax @ 15% on 25% of the Total Purchase price is levied on under Construction Property. In other words Service Tax @ 3.75% (25% of 15%) is levied on the total price paid for the purchase of an under construction property.
Is mobile recharge voucher sale is considered in turnover?
The sales and purchase of mobile recharge services/coupons are included as the turnover of the assessee in terms of section 44AB of the 1.
What is tax on mobile recharge?
Deduction of Charges / Taxes on Prepaid Re-load /Recharge and Tariffs. 76 as reported on the social media) after deduction of Rs. 11.111 against withholding tax @ 12.5%. GST @19.5% is applied on per call, SMS, and data usage basis.
How much tax is deducted from mobile load?
Now, telecom companies have been asked to not charge any service or operational fee for card loads. It must be mentioned here that 12.5% withholding tax and 19.5% FED is still applicable as before and will be deducted from mobile card recharge as usual.
Are doctors liable for service tax?
a) The amount booked under “collection charges/facilitation fee” of doctors is not liable to service tax under Business Support Service. In terms of Section 65(104c) of the Finance Act, 1994, doctors are not “business entities” and are not engaged in a business or commerce.
What is service tax on flat purchase?
In other words Service Tax @ 3.75% (25% of 15%) is levied on the total price paid for the purchase of an under construction property. The Budget 2013 brought in an amendment to the above provisions and reduced the abatement from 75% to 70% for flats above 2000 sq. feet (Carpet Area) or costing Rs. 1 Crore and above.
It does not matter that the main service provider has discharged service tax on the full value of recharge coupon voucher. If the appellant pays the service tax, the main operator would be eligible to avail cenvat credit of the service tax discharged by the appellant.
Is service tax payable in free service?
The Tribunal held that in case of after sales services, service tax is leviable provided the manufacturer had reimbursed/paid for the expenses incurred for rendering such services. In the absence of such reimbursement/payment, no service tax could be levied on services rendered free of cost to customers.
Is GST required for mobile recharge retailer?
How much is GST on a mobile bill?
Under GST, the tax rate is the same across the country, and thus a uniform price can be set for a mobile phone. At present, the GST rate on mobile phones is 18%.
Do you have to pay tax on prepaid mobiles?
No.118, 119, 120, 2466 & 2467/DEL/2019 Conclusion: Discount offered on some of the prepaid mobile services did not partake the character of commission under Section 194H and hence there was no obligation to withhold tax on such discounts on prepaid services.
Do you pay service tax on prepaid recharge vouchers?
The claim was filed on the ground that the money value of the discount given on the recharge vouchers had not been received by the respondent and hence service tax is not payable on those as per Explanation (2) of Sec. 67 of the Finance Act, 1994 and Rule 6 of the Service Tax Rules, 1994.
Is there TDs on discount to pre paid mobile service distributors?
As per TDS officer the relationship between assessee and the pre-paid distributors was not that of ‘Principal to Principal’ and the discount allowed to them was in nature of commission liable for tax deduction at source as envisaged under section 194H.
Is there tax on discounts on prepaid services?
Reliance Communications Infrastructure Ltd. (ITA 4677/Mum/2012 – decision dated 23.3
