Commission agent exemption applies to SIM card sales commission where the cards are treated as a separate object of sale.

Commission received for selling SIM cards on behalf of a cellular service provider was treated as covered by the commission-agent exemption under Notification No. 13/2003-ST, because the agent caused the sale of goods for consideration linked to the sale and the SIM cards were regarded as a separate object of sale. The fact that the telecom provider had already discharged service tax on activation charges did not disqualify the exemption merely because the arrangement was connected with telecom services. On that basis, the commission on SIM card sales was held exempt and service tax was not payable for the stated period.

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Issues: Whether commission received for selling SIM cards on behalf of a cellular service provider was covered by the exemption for commission agents under Notification No. 13/2003-ST, and whether service tax was payable for the period 1.7.2003 to 30.6.2004.

Analysis: The exemption notified commission agents who caused the sale or purchase of goods on behalf of another person for consideration linked to the quantum of such sale or purchase. The record showed that the respondent sold SIM cards on behalf of the service provider and that service tax had already been discharged by the provider on activation charges. The sale of SIM cards was treated as a separate object of sale, and the exemption could not be denied merely because the transaction was connected with telecom services.

Conclusion: The commission earned on sale of SIM cards was covered by the exemption, and no service tax was payable for the period 1.7.2003 to 30.6.2004.

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