TMI BlogApplicability of service tax on lotteryX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, My query is that whether selling lottery tickets by a state government authorities through authorized distributor is taxable or falls under negative list.If taxable, who will pay the service tax, - Reply By YASHAVANTH RENUKA - The Reply = Dear Manash, Under Sec. 65 ( 105) zzzzn of service tax finance section, on Services of Promoting, Marketing Organizing of games of chance in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding Lottery, Bingo Lotto service tax is applicable. Accounting code is 00440595. - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per Sl. No. 1C of Notification No. 30/2012-ST dated 20.6.2012 as amended in respect of services provided or agreed to be provided by a selling or marketing agent of lottery tickets in relation to lottery in any manner to a lottery distributor or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elling agent of the State Government under the provisions of the Lottery (Regulations) Act, 1998 (17 of 1998) 100% of service tax is payable by any person liable for paying service tax other than the service provider . That is the service receiver is liable to pay 100% of service tax payable. - Reply By Ganeshan Kalyani - The Reply = The said service is a taxable service and falls under reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse charge mechanism. The receiver of the service is liable to pay 100% service tax. - Reply By KASTURI SETHI - The Reply = I support the views of the experts. I also add further information as under: D.O. F. No. 334/8/2016-TRU, dated 29-2-2016 4.2 Further amendments in Chapter V of the Finance Act, 1994 : A. Lottery : Section 4(c) of the Lotteries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Regulation) Act, 1998 provides that the State Government shall sell the tickets either itself or through distributors or selling agents. Thus, as per the provisions of the Lotteries (Regulation) Act, 1998, the transaction between the State Government and the distributors or selling agents is on principal to agent basis. Any contract contrary to the aforesaid legal provisions is ultra vir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es the provisions of Indian Contracts Act, 1872 and thus not legally enforceable. Explanation 2 in section 65B(44) is proposed to be amended to clarify that activity carried out by a lottery distributor or selling agents of the State Government under the provisions of the Lotteries (Regulation) Act, 1998 (17 of 1998), is leviable to service tax. (Clauses 145 of the Bill refers) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.B.E. C. Letter D.O.F. No. 334/5/2015-TRU, dated 19-5-2015 2.5 An entry in the Negative list covers betting, gambling or lottery [Section 66D(i)]. This entry has been amended by section 109(3) of the Finance Act, 2015 so as to include an explanation that betting, gambling or lottery shall not include the activity carried out by a lottery distributor or selling agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner. The objective of making these exclusions was to make it explicitly clear that while lottery per se is not subject to service tax, aforesaid services in relation to lottery will be taxable. This will come into effect from 1st June, 2015. ( Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 14/2015-Service Tax, dated 19th May, 2015 refers). 2.6 In respect of certain services like money changing service, service provided by air travel agent, insurance service and service provided by lottery distributor and selling agent, the service provider has been allowed to pay service tax at an alternative rate subject to the conditions as prescribed under rules 6(7), 6(7A), 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (7B) and 6(7C) of the Service Tax Rules, 1994. Consequent to the upward revision in Service Tax rate, the said alternative rates shall also be revised proportionately. - Applicability of service tax on lottery - Query Started By: - MANASH MUKHERJEE Dated:- 8-3-2017 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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