ServiCe Tax -Prepaid Distribution Vodafone
Ranjith
(Querist) 03 April 2010
This query is : Resolved
Vodafone Essar is collecting Service Tax for the Service tickets (Recharge Coupons and Sim cards)from their distributors. The Service Tax is collected for the margin given to them and also for the margin given to the retailers,that is tax is collected for the maximun - MRP. In spite of this the Service Tax department is issuing notice to the Vodafonr distributors to remitt the service tax on the margin received by them since they are registered as a Business auxillary Unit and Vodafone as a Telecom Unit.Legal view point on this may be intimated since maximum tax was collected by the principals and demand issued again will amounts to double taxation for the same amount.
adv. rajeev ( rajoo )
(Expert) 03 April 2010
Yes you are right. Reply the concerned department in detail how you are not entittled to pay service tax.
Ranjith
(Querist) 03 April 2010
We had given the details to the service tax with ample proof and requested them to quash the demand. In spite of this they are still proceeding with the demand. Request to inform what steps within the law that can be taken by us as the amount involved runs in to several lakhs.
Raj Kumar Makkad
(Expert) 03 April 2010
I suggest to make a detailed representation to Ministry of Revenue & Fiance and convince them to issue a notification to collect tax at one source rather collecting it doubly or tripally in your case.
soumitra basu
(Expert) 04 April 2010
Please refer the judgment in M/S. Karakkattu Communications 2007 TIOL 1374 CESTAT Bangal. (Order dated 29.06.2007) which speaks:
BSNL confirmed that they have already paid service tax on the SIM cards sold to the appellants, hence as BSNL has already discharged their burden and there could not be double taxation, the order demanding the service tax was set aside.
You also may refer the following judgments:
Chetan Traders (2008) 41 Taxcon (Del) 247
South East Corporation , Final Order No. 610/2007 dated 25th May, 2007
