Tuesday, October 16, 2007

The sole selling agent promotes the sale of the lottery tickets

Will the lottery agent fall into service tax net?

A bumper draw of sorts is currently on, with more than Rs 2,000 crore as the sum at stake. And, the amount seems to be only a teaser of what can be bigger jackpots that the taxman is gunning for, from the lottery industry.
“The lottery industry has been contributing significantly to the exchequer of the governments, particularly the States running the lottery,” observe Mr D. Arvind and Mr J. V. Niranjan, Chennai-based indirect tax experts associated, as partner and senior manager, respectively, with BSR & Co, a firm of chartered accountants.
“State governments have been angling for a slice of the pie by seeking to levy sales tax on the sale of lottery tickets happening within their State,” they add, in a recent e-mail interaction with Business Line.

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