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?
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.