Registration under service tax

[Guest]

one of my client is distributor of m/s bharti airtel ltd to sale connections with or without mobile handset and recharge coupn also. we have taken service tax number on the advise of company under business auxillry services.The company is giving us connection for rs. 25 and the mrp of connection card is rs 90 and the company is charging service tax on mrp i.e. on rs 90.we are selling the card for rs 25 and after activation of connection the company will giv rs.10 for each card. how we should file our s.t. return. whether it is necessary to hod service tax number for us.

[Guest]

Distributor is not entitle to pay service tax because its activity is just of marketing and distribution of products for which certain amounts of profits received .Related cases(i) 2007 (8) S.T.R.405(Tri.- Bang.)

AI Summary

Service tax liability: distributors engaged solely in marketing and distribution are not liable when remunerated by commission. The distributor's activity of marketing and distributing telecom connection cards, remunerated by profit or commission and involving sale of cards at discounted prices with post-activation payments from the principal, does not attract service tax liability; consequently, registration and filing obligations for service tax are not triggered for that activity under the facts described.