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December 2010

Optional Composition Scheme for Distributor/Selling Agent of Lottery Notification No. 49/2010-ST, dated 8-10-2010.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
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Part B : INDIRECT TAXES

 

SERVICE TAX UPDATE

22. Optional Composition Scheme for Distributor/Selling Agent of Lottery Notification No. 49/2010-ST, dated 8-10-2010.

Under the lottery or lottery scheme, where the guaranteed prize payout is more than 80%, a distributor or selling agent can opt to pay flat service tax of Rs.6000 and where the guaranteed prize payout is less than 80%, he can opt to pay flat service tax of Rs.9000, on every Rs.10 lakh of aggregate face value of lottery tickets printed by the organising State for a draw.

Such option will have to be exercised within one month of the beginning of each financial year (for F.Y. 2010-11 by 7-11-2010) for the entire financial year. A new service provider can exercise such option within one month of providing such service.

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