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 weizmann forex review dot furtherance of sale.
Organization and selling of lotteries are globally treated as supply of service. Act, 1998 enables State Governments to organize, conduct or 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.