03 July 2010
there is a company that is charging commision from its client for machinery procurement whether this is service under service tax ambit if it is so then please give reference of claue me for the same..
Whether taxable? This is the milion doller qiestion in Service Tax Law.
In my view it falls under Business Auxiliary Service vide section 65(19)(iv).
There may be a dispute as to whether the machinery is an inputs for the client.
In terms of definition of inputs in the Cenvat Credit Rules, input includes all goods except few specified goods like Diesl etc. Hence Capital Goods are also inputs.
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