Incidence of service tax on sale of lottery tickets

[Ramachandran and Ramachandran Associates Subramanian]

Whether there is incidence of service tax on sale of lottery tickets by stockists ? These stockists buy lottery tickets from distributors and sell to retail selling agents. The purchases made from Distributors are invoiced. The sales effected to retail selling agents are invoiced. These stockists are merely traders. Whether any incidence of service tax will arise in this case ?

AI Summary

Legal Debate: Does Service Tax Apply to Lottery Ticket Sales by Stockists? Awaiting Supreme Court's Final Decision. A discussion initiated by a legal firm questioned whether service tax applies to stockists selling lottery tickets. These stockists purchase tickets from distributors and sell them to retail agents, with transactions being invoiced. A respondent referenced a Supreme Court decision involving Martin Lottery Agencies, which concluded that service tax does not apply to the lottery business. However, the decision did not address changes in Business Auxiliary Service laws related to lotteries. The respondent believes that, even with legislative amendments, service tax should not be applicable to the lottery business, pending a final Supreme Court decision.