Monday, November 15, 2010

NEW SERVICE TAX PAYMENT SCHEME FOR LOTTERY TICKET DISTRIBUTORS AND PRIZE PAYOUT

Under the composition scheme, a distributor or lottery selling agent who is liable to pay service
tax, can opt to pay flat service tax of Rs.6000 on every Rs 10 lakh of aggregate face value of lottery
ticket printed by the organizing state for a draw. This rate will apply in those lottery schemes were
the guaranteed prize payout is more than 80 per cent, the Finance Ministry has said. For lottery
schemes where the guaranteed prize payout is less than 80 per cent, a distributor or selling agent will
have to pay service tax of Rs.9000 on every Rs 10 lakh of aggregate face value of lottery ticket
printed by the organizing state for a draw.

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