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Specified actionable claims (lottery, gambling, betting, casino, horse racing, online money gaming) are taxed at:
A12%
B18%
C28% with Compensation Cess on full face value
DNil
Answer & Solution
Correct answer: C. 28% with Compensation Cess on full face value
1. Effective 01.10.2023, specified actionable claims were brought to tax under Sec 9 at 28%.
2. Value of supply is the full face value of bet / amount paid (Rule 31B), and Compensation Cess also applies.
3. Casino, online money gaming and horse racing are covered.
_Source: ICAI BoS CA Final Paper 8, Ch 3 "Levy and Collection of Tax", §Sec 9 + Notf 1/2024-CT_
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