Services provided in relation to promotion or marketing of service provided by the client is leviable to Service Tax under business auxiliary service. Marketing or promotion means activities which are directed towards furtherance of sale. Organization and selling of lotteries are globally treated as supply of service. Act, 1998 enables State Governments to organize, conduct forex trading in india legal 2014 1040 promote lotteries.
Lottery tickets are printed by the State governments and are sold through agents or distributors. Tickets are delivered by the State Government to the distributors at a discounted price as compared to the face value of the tickets. Thus, the procurements of input, capital goods or input services as defined in the CENVAT Credit Rules, by any person for a client i. Commission agent: As per the definition of Business Auxiliary services, services as commission agent are considered Business Auxiliary services. As regards the question whether Insurance agents, Clearing and Forwarding agents working on commission basis fall under the definition of business auxiliary service, it is clarified that they do not, as they are specifically covered within the definition of other specified taxable services, namely the Insurance service and Clearing and Forwarding Service respectively.
It is not possible to give an exhaustive list of business auxiliary services, the following are illustrations of services that are covered under this category viz. The activity of production or processing of goods for, or on behalf of, the client either amounts to manufacture or it amounts to Job work. This exclusion is given to avoid double taxation on same product. Manufacture attracts levy of Excise duty, thus the production or process which does amount to manufacture is excluded from levy of Service Tax. Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer.
The definition of Job Worker is given in CENVAT Credit Rules 2004. Business Auxiliary Service’ if such production activity does not amount to manufacture. So, if process amounts to manufacture the duty of Excise will be levied and if it does not amount to manufacture the Service Tax can be levied. 2005-ST dated 01-03-2005 exempts the taxable service of production or processing of goods for, or on behalf of, the client, from Service Tax. Nil’ rate of duty or duty of excise wholly exempt.
Small service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of Rs. Services provided for official or personal use of foreign diplomatic missions and family members of diplomatic missions. Business Auxiliary Service is provided in relation to production or processing of parts and accessories used in the manufacture of cycles, cycle rickshaws and hand-operated sewing machines, for, or on behalf of, the client subject to the condition that gross amount charged from the client is inclusive of the cost of inputs and input services, whether or not supplied by the client. Taxable service provided by a person, having his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, and which is received by a hotel located in India, in relation to booking of an accommodation in the said hotel, for a customer, who has his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, is exempt from the whole of the Service Tax. Central Excise Act, 1944 would not be liable to Service Tax. As production of goods on behalf of the client is leviable to Service Tax under ‘Business Auxiliary Service’ only if such production activity does not amount to manufacture.
ISSUE 1: Whether commission received by distributors for distribution of mutual fund units is liable to Service Tax under Business Auxiliary Service? ANSWER 1: Distributors receive commission from mutual fund for providing services relating to purchase and sale of Mutual fund units. Services provided by such distributors are in the nature of commission agent and are, thus, liable to Service Tax under Business Auxiliary Service . Such services are liable to Service Tax under Business Auxiliary Service . Service Tax CBEC Instruction letter F.
Service Tax CBEC Instruction Letter F. Service Tax Relevant para of Circular No. The issue involved in this case stands decided by the Tribunal in the case of Paul Merchant Ltd. STO 2012 CESTAT 1047 wherein it has been held that the services provided by the sub-agents of the Western Union is an export of service and no service tax would be attracted.
Activity undertaken by the appellant is a part of manufacturing process and the principal manufacturer was paying duty on the goods processed by the appellant. Even though the agreement is termed as “Franchise Agreement”, it is essential an agreement relating to letting out immoveable property for running outlet of “Cafe Coffee Day”. Further as the properties are being taken to run Cafe Coffee Day, certain conditions have been enumerated so as to ensure the smooth functioning of outlets on day to day basis and cooperation by Appellants in this regard. Business Auxiliary Service: Applicants are providing service to the Jharkhand State Electricity Board, which comprises meter reading, preparation of monthly energy bill, delivery of the bills to customers, preparation and supply of consumer ledger etc.
Directions issued for partial pre deposit. In similar circumstances, in Eldyne Electro Systems Pvt. 2009 Tribunal granted waiver to the applicant. Following the said precedent decision, recovery stayed during the pendency of the appeal. Business Auxiliary Service: Demand: As a Public Sector Undertaking, the assessee ought to have been a role model to other assesses, in the matter of providing full and frank disclosure of all the relevant transactions and material, called for by Revenue.