Indivisual may be treated as Commercial concerm ?
This query is : Resolved
11 December 2009
An Individual received Incentive during 2004-05 . Can he/she may be treated as commercial concern under Business Auxiliary Service .
11 December 2009
Where is the need to be called a commcercial concern in BAS. Any person couldbe liable in my view. If you could clarify what is the nature of activity answer could be more specific.
12 December 2009
Assuming the service is classified as commission agent falling under Section 65(19) for business auxiliary service.
The term “Commercial Concern†was replaced by “ Any other Person†vide Finance Act,2006 but before this amendment the term “Commercial Concern†has never been defined in the act, so it was interpreted by the judicial forum time to time to settle the contentious issues. The inferences of these decisions broadly settled the term commercial concern as an institution or establishment that is primarily engaged in commercial activities. In another case the tribunal defined commercial concern as “having financial gain as an objectâ€. As per Illustrated Oxford Dictionary, commercial concern means “having profit as a primary aim rather than artistic valueâ€. Thus, only a commercial concern whose primary aim is to earn profit is sought to be taxed.
So in view of the above it is regardless whether incentive (commission) received by individual or partnership firm. The important is the motive to levy service tax not the structure of organization whether individual or partnership.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731)
The term “Commercial Concern†was replaced by “ Any other Person†vide Finance Act,2006 but before this amendment the term “Commercial Concern†has never been defined in the act, so it was interpreted by the judicial forum time to time to settle the contentious issues. The inferences of these decisions broadly settled the term commercial concern as an institution or establishment that is primarily engaged in commercial activities. In another case the tribunal defined commercial concern as “having financial gain as an objectâ€. As per Illustrated Oxford Dictionary, commercial concern means “having profit as a primary aim rather than artistic valueâ€. Thus, only a commercial concern whose primary aim is to earn profit is sought to be taxed.
So in view of the above it is regardless whether incentive (commission) received by individual or partnership firm. The important is the motive to levy service tax not the structure of organization whether individual or partnership.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
