Rs 6000
per mn and 9000 per mn
Service Tax for Lotteries Prescribed
[Service Tax Notification No.
49 dated 8th October 2010]
In exercise of the powers conferred by sub-sections (1)
and (2) of section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as
the said Act), the Central Government hereby makes the following rules
further to amend the Service Tax Rules, 1994, namely :-
1. (1) These rules may be called the Service Tax (Second Amendment)
Rules, 2010.
(2) They shall come into force on the date of their
publication in the Official Gazette.
2. In the Service
Tax Rules, 1994 (hereinafter referred to as the said rules), in rule 6, after
sub-rule (7B), the following shall be inserted, namely:-
“(7C) The distributor or selling agent, liable to pay
service tax for the taxable service of promotion, marketing, organising or in
any other manner assisting in organising lottery, referred to in sub-clause (zzzzn) of clause (105) of section 65 of the said Act
(hereinafter referred to as the said sub-clause), shall have the option to pay
an amount at the rate specified
in column (2) of the Table given below, subject to the conditions specified in
the corresponding entry in column (3) of the said Table,
instead of paying service tax at the rate specified in section 66 of Chapter V
of the said Act:
|
Table |
||
|
Sl.
No. |
Rate
|
Condition |
|
(1) |
(2) |
(3) |
|
1. |
Rs
6000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of lottery tickets printed
by the organising State for a draw |
If the
lottery or lottery scheme is one where the guaranteed prize payout is more
than 80% |
|
2. |
Rs
9000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of lottery tickets printed
by the organising State for a draw |
If the
lottery or lottery scheme is one where the guaranteed prize payout is less
than 80% |
Provided that in case of online lottery, the aggregate
face value of lottery tickets for the purpose of this sub-rule shall be taken
as the aggregate value of tickets sold, and service tax shall be calculated in
the manner specified in the said Table.
Provided further that the distributor or selling agent
shall exercise such option within a period of one month of the beginning of
each financial year and such option shall not be withdrawn during the remaining
part of the financial year.
Provided also that the distributor or selling agent shall
exercise such option for financial year 2010-11, within a period of one month
of the publication of this sub-rule in the Official Gazette or, in the case of
new service provider, within one month of providing of service under the said
sub-clause and such option shall not be withdrawn during the remaining part of
that financial year.
Explanation.- For the purpose of
this sub-rule-
(i) “distributor
or selling agent” shall have the meaning assigned to them in clause (c) of the
rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs published in the Gazette of India,
Part-II, Section 3, Sub-section (i) vide number
G.S.R. 278(E) dated 1st April, 2010 and shall include distributor or selling
agent authorised by the lottery organising State.
(ii) “draw” shall
have the meaning assigned to it in clause (d) of the rule 2 of the Lottery (Regulation)
Rules, 2010 notified by the Government of India in the Ministry of Home Affairs
published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.
(iii) “online
lottery” shall have the meaning assigned to it in clause (e) of the rule 2 of
the Lottery (Regulation) Rules, 2010 notified by the Government of India in the
Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3,
Sub-section (i) vide number G.S.R. 278(E) dated 1st
April, 2010.
(iv) “organising
state” shall have the meaning assigned to it in clause (f) of the rule 2 of the
Lottery (Regulation) Rules, 2010 notified by the Government of India in the
Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3,
Sub-section (i) vide number G.S.R. 278(E) dated 1st
April, 2010.
[F.
No.B-1/21/2010 -TRU]