Monday, April 25, 2011

Service Tax - New Rule6(7C)

New Rule6(7C) of S.Tax Rules

*Taxable Service: Promotion,Marketing or organising lottery

*Distributor/Selling Agent

*OPTIONAL MODE of PAYMENT of S.Tax instead of 10%
(a)if Guaranteed Lottery Prize PAYOUT is MORE than 80% -then Rs.(6000+Cess) on every Rs.10Lacs (or part 10Lacs) of aggregate FV of tickets PRINTED

(b)if Guaranteed Lottery Prize PAYOUT is LESS than 80% -then Rs.(9000+Cess) on every Rs.10Lacs (or part 10Lacs) of aggregate FV of tickets PRINTED

*if ONLINE LOTTERY, then aggregate FV of tickets SOLD.

*Option once excercised cant b withdrawn during that FY

*Persons Marketing Lottery tickets otherthan above, shall b exempted IF THIS OPTION IS AVAILED BY Distributor/Selling Agent

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