Service tax return

[Guest]

my client is distrubutor for reliance communication ltd. RELIANC COMMUNICATION LTD CHARGE SERVICE TAX ON MRP. WE ARE NOT CHARGING SERVICE TAX FROM THE CUSTOMERS SEPARTELY. WE HAVE TAKEN SERVICE TAX REGISTRATION AS PER RELIANCE COMMUNICATION LTD DIRECTION. SHOULD WE SHOW OUR SALE TO CUSTOMERS IN SERVICE TAX RETURN ON WHICH WE HAVE NOT CHARGED ANY SERVICE TAX SEPARTELY. IF YES THEN AGAINST WHICH COLUMN OF FORM ST-3 SHOULD IT SHOWN.

[Guest]

In case you are selling products of reliance communication ltd. like sim card, coupons etc. there is no service tax on this activity. However, if you are earning commission etc. on account promotion of business and like that, you are required to pay service tax only on commission charges received. In that case, you need not to show the amount of trading activity in the st-3 return as there is no column in st-3 return.

AI Summary

Service tax applicability on commissions clarified: only commission receipts are taxable; trading sales of goods excluded from service tax return. Distributors' retail sales of goods such as SIM cards and coupons are trading activity and not subject to service tax, thus need not be reported as taxable output in the service tax return; however, commission or promotional fees received for services are taxable and must be included in the return under the column for taxable service receipts.