Supply of Recharge coupons and C top Up to Composite retailers, Service Tax

[D srrao]

Sir,

Telecom Service Providers(BSNL;AIRTEL;JIO etc.,) are selling their service(voice recharge/data recharge/ c top Up/E top Up) to customers through Franchisees(Distributors) who are maintaining retail network chain.

The Franchisee is supplying stock to every retailer(Pan Shops.Grocery Shops,Cell Shops,General Stores etc multi business outlets) in normal way. Now the query is whether they can supply the stock to the retailers who are registered under composite scheme as Telecom product is comes under service sector.

I hope you got my point and please clarify whether Franchisee can sell the recharge product to retailers under composite scheme.

Thank You

Posts / Replies

[KASTURI SETHI]

Any telecom franchisee normally supplies service through out India. A retailer registered under Composition Scheme cannot purchase outside the State.

[D srrao]

Sir,

I am a BSNL FRANCHISEE (Distributor) for a small area in VISAKHAPATNAM city of Andhra Pradesh

So far I am supplying stock to every retailer(Pan Shops.Grocery Shops,Cell Shops,General Stores etc multi business outlets) in normal way. Now the query is whether I can supply the stock to the retailers who are registered under composite scheme as Telecom product is comes under service sector.

I am purchasing stock locally from BSNL , Visakhapatnam City and selling locally in one part of Visakhapatnam. I hope you got my point and please clarify whether I can sell the recharge product to retailers under composite scheme. .

Thank You