Circular - distributor of lottery tickets and the State Government

[Ramachandran and Ramachandran Associates Subramanian]

Where can I get the text of the circular letter issued by Commissioner (Service Tax), Ministry of Finance, CBEC dated 14.01.2007 wherein it was concluded that the nature of transactions between the distributor of lottery tickets and the State Government do not constitute a sale ?

AI Summary

Lottery Distributors' Transactions with State Not Sales; Subject to Service Tax as Business Auxiliary Service Under 1998 Act A query was raised regarding a circular issued by the Commissioner (Service Tax) on January 14, 2007, which concluded that transactions between lottery ticket distributors and the State Government do not constitute a sale. A reply requested the circular number and topic, as it was not publicly available. Another response referenced a Supreme Court decision, stating the transaction is governed by the Lottery (Regulation) Act, 1998, and the distributor's activities are considered promotion or marketing, subject to service tax under 'business auxiliary service.' The Central Excise Superintendent directed registration and tax payment under this category.