Applicability of Service Tax
This query is : Resolved
15 February 2008
Is service tax applicable if a person carry out a proprietory business of visa consulting? If yes then what will be the service catagory?
[Suppose a an individual commences the business of purely consulting for visa to various catagories such as students visa, visiter visa or work permit. He only guides the parties and do the paper formalities. For that he charge fee. The amount received by that businessman includes the university fees, levis fees and other fees which are required to pay by him on behalf of student/client.
So my question is that if service tax is applicable, then on which amount it will be charged and what will be total turnover for that purpose. Would it include other fees which are the primary liability of the client?]
how will we deal with above matter.
Please suggest your detailed solution, preferable not in one or two lines.
you may please send me solution to my mail also. (keshav_arya@yahoo.com)
Thank You
[Suppose a an individual commences the business of purely consulting for visa to various catagories such as students visa, visiter visa or work permit. He only guides the parties and do the paper formalities. For that he charge fee. The amount received by that businessman includes the university fees, levis fees and other fees which are required to pay by him on behalf of student/client.
So my question is that if service tax is applicable, then on which amount it will be charged and what will be total turnover for that purpose. Would it include other fees which are the primary liability of the client?]
how will we deal with above matter.
Please suggest your detailed solution, preferable not in one or two lines.
you may please send me solution to my mail also. (keshav_arya@yahoo.com)
Thank You
16 February 2008
SECTION 65(65) OF SERVICE TAX ACT MAKES MANAGEMENT CONSULTANTS SERVICES AS TAXABLE.
AS PER FINANCE ACT 2006 AMENDMENTS TO THE DEFINITION OF MANAGEMNT CONSULTANT, THE SAME IS MATERIALLY AMEMDED AND WILL INCLUDE FINAN.,HUMAN RESOURCES MANAGMNT,MARKETING, LOGISTICS,PRODUCTION,PROCUREMENT,INF. TECH AND OTHER SIMILAR AREARS OF MANAGEMNT.
PL. NOTE IT IS NOT A MANPOWER RECRUITMENT SERVICE . IT IS CONSULTING RELATING TO PROVIDE VISA OF ANY CATEGORY .THIS IS A DISTINCT SERVICE AS AN AREA OF MANAGEMENT AS PER ABOVE DEFINITION.
THE GROSS AMOUNT CHARGED FOR SERVICES RENDERED IS THE VALUE OF TAXABLE SERVICE LIABLE TO SERVICE TAX.
WHATEVER IS CHARED AS HIS GROSS SERVICE FEES/CHARGES IS ONLY TAXABLE AT 12.36%.
REIMBURSEMENTS OF FEES MAY BE CLAIMED SEPARATELY AND ARE NOT LIABLE FOR SERVICE TAX.
IF THE GROSS FEES FOR HIS SERVICES IN A YEAR EXCEEDS RS. 8 LAKHS, SERVICE TAX LIABILITY IS ATTRACTED.
THRESHOLD FOR REGISTRATION UNDER SERVICE TAX ACT IS RS. SEVEN LAKHS.
R.V.RAO
AS PER FINANCE ACT 2006 AMENDMENTS TO THE DEFINITION OF MANAGEMNT CONSULTANT, THE SAME IS MATERIALLY AMEMDED AND WILL INCLUDE FINAN.,HUMAN RESOURCES MANAGMNT,MARKETING, LOGISTICS,PRODUCTION,PROCUREMENT,INF. TECH AND OTHER SIMILAR AREARS OF MANAGEMNT.
PL. NOTE IT IS NOT A MANPOWER RECRUITMENT SERVICE . IT IS CONSULTING RELATING TO PROVIDE VISA OF ANY CATEGORY .THIS IS A DISTINCT SERVICE AS AN AREA OF MANAGEMENT AS PER ABOVE DEFINITION.
THE GROSS AMOUNT CHARGED FOR SERVICES RENDERED IS THE VALUE OF TAXABLE SERVICE LIABLE TO SERVICE TAX.
WHATEVER IS CHARED AS HIS GROSS SERVICE FEES/CHARGES IS ONLY TAXABLE AT 12.36%.
REIMBURSEMENTS OF FEES MAY BE CLAIMED SEPARATELY AND ARE NOT LIABLE FOR SERVICE TAX.
IF THE GROSS FEES FOR HIS SERVICES IN A YEAR EXCEEDS RS. 8 LAKHS, SERVICE TAX LIABILITY IS ATTRACTED.
THRESHOLD FOR REGISTRATION UNDER SERVICE TAX ACT IS RS. SEVEN LAKHS.
R.V.RAO
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