Whether is this a service liable for service tax?


14 August 2012
Dear Sir / Madam,

Whether following activity can be treated as a Service liable for Service tax?:

Mr. A opens a Bank account for his clients who do not understand net banking, and pays Tax on their behalf after depositing tax amounts received from them and provides this facility free of cost. Is this a Service liable to service tax?
Whether the status changes, if he charges some fees for this facility?

Kindly revert.

Thanks,
Suraj

14 August 2012 service tax is not applicable.

14 August 2012 If service is provided free of cost, then no service tax is applicable. If he charges some fees then it is in the nature of consultancy service and service tax applicable.


18 August 2012 Dear Mr. Navin,

Is it not liable to service tax even if he charges some extra fees for this service?

Regards
Suraj



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