Registration under service tax, Service Tax

[d.v.gupta]

one of my client is distributor of m/s bharti airtel ltd to sale connections with or without mobile handset and recharge coupn also. we have taken service tax number on the advise of company under business auxillry services.The company is giving us connection for rs. 25 and the mrp of connection card is rs 90 and the company is charging service tax on mrp i.e. on rs 90.we are selling the card for rs 25 and after activation of connection the company will giv rs.10 for each card. how we should file our s.t. return. whether it is necessary to hod service tax number for us.

Posts / Replies

[daya shankar]

Distributor is not entitle to pay service tax because its activity is just of marketing and distribution of products for which certain amounts of profits received .Related cases(i) 2007 (8) S.T.R.405(Tri.- Bang.)