Hi,
I am from Kerala and I have a concern. The situation is like I am purchasing a web service and reselling it to my clients; still, the service provider would be the creator of the web service (I am just a link between the client and the service provider).
The business is in such a way that I am getting the service for Rs. 250 per person (login) including service tax. I am planning to sell it for Rs. 250. Will I have to include Service Charge in the bill to my clients? If so, how much?
Kerala user questions service tax on reselling web services; liability depends on 'pure agent' status under specific conditions. A user from Kerala is concerned about service tax implications when reselling a web service. The user purchases the service for Rs. 250 per person, including service tax, and plans to sell it at the same price. A respondent clarifies that the user's tax liability depends on their status as a 'pure agent.' If the user meets specific conditions, they only pay service tax on their service charges, not the full Rs. 250. Otherwise, they must pay service tax on the entire amount but can claim cenvat credit for the tax paid to the original service provider. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
