Case Law Details
Brief Facts of the case:
The respondents were engaged in providing telecommunication services were registered with the Service Tax authorities at Mumbai and were discharging service tax liabilities. Respondents were providing prepaid services to their subscribers of cellular phone services and collected payment for such services through prepaid cards and recharge vouchers. The prepaid cards and recharge vouchers were sold in physical form through distributors, retailers and electronically. MRP is printed on these SIM cards and recharge coupons.
It was alleged in the show‐cause notice that there was a short payment of tax as the respondent had not taken the correct value for discharging the service tax liability. The respondent paid the service tax on the amount received from dealers on sale of recharge coupons and SIM cards instead of paying the same on MRP.
The SCN was challenged by the assessee before the Commissioner (Appeals), who decided the case in favour of revenue. Being aggrieved by the decision of Commissioner(Appeals) , Revenue approached to this tribunal. Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
when is ST payable by BSNL when sold to distributor or when recharge coupon actually used by end of customer?
Can you please explain this decision with an example?
The heading is misleading and not in line with the judgement. please correct it
I hv n issue regarding this.The client is Distributor of recharge coupon and sell this to retailer dealers. Want to know the service tax compliance.
As I read the matter,It means Service tax is payble on the value of MRP less discount given by the distributor to dealer
or on value amount received by distributor from dealer and separate mentioned the commission amount on the bill and pay service tax on only commission amount.
Please revert back
CA PANKAJ KUMAR
[email protected]