Sunday, May 1, 2011

Optional Composition Scheme for payment of service tax in case of distributor or selling agents of lotteries

A special mode of payment of service tax has been provided to a distributor or selling agent of lotteries .
The distributor or selling agents rendering the taxable service of promotion, marketing or organising/assisting in organising lottery can discharge their service tax liability in the following rates instead of paying service tax @10%:-

1. If the lottery / lottery scheme is one where Guaranteed prize payout > 80% :
6000/- on every 10 Lakh (or part of 10 Lakh) of aggregate face value of lottery tickets printed by the organizing State for a draw.
2. If the lottery / lottery scheme is one where  Guaranteed prize payout < 80%
9000/- on every 10 Lakh (or part of 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw.



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