Applicability of service tax - installing, repairing - selling of cash cards

[Guest]

Assessee providing services related to Broadband on behalg of a service provider, like instalation of new connection, repair & maintenance of existing connection, collection on behalf of service provider. Whether the Assessee, getting commission for above services is liable for service tax if yes on what amount. what if taxable services are below Rs. 4 Lakh PA. Assessee is also selling cash card for broadband service like cash card for mobile bill. Is assessee liable for service tax on sale of cash cards. if Yes on what amount service tax has to be paid. Assessee is getting cash card from the company at a discounted rate. The value of cash card also includes service tax.

AI Summary

Service tax applies to broadband services like installation and maintenance, but exemptions exist for turnovers under Rs. 4 lakh. An individual inquired about the applicability of service tax on services related to broadband connections, such as installation, maintenance, and selling cash cards. The main concern was whether the service provider, who receives a commission, is liable for service tax, especially if the taxable services are below Rs. 4 lakh annually. Responses clarified that all mentioned services are subject to service tax, but exemptions apply if turnover is under Rs. 4 lakh. Selling cash cards may not require additional service tax if the original provider has already paid it on the full value.