The document discusses the classification of services under service tax law. It states that the correct classification of a service determines its taxability and eligibility for any exemptions or abatements. Different services also have different rules for determining the place of provision, especially for import and export of services. The document outlines rules for classifying bundled services, noting that services bundled ordinarily will be treated under the dominant nature, while non-ordinarily bundled services will be taxed at the highest rate. It provides some subjective factors and examples to determine what constitutes ordinary bundling but notes there is no set formula.

2. Classification -Significance
 Taxability-- the correctness of classification of a
service determines the taxability or otherwise of a
particular service (since there is a Negative List too…)
 Exemption -- the benefits of exemption and
Abatements available to a particular service , may not
be available to other services
 Place of Provision -- the rules for determining the
Place of Provision are different for different services
(for Import & Export of Service)

3. Classification of Services[Sec.66F]
 1.Rules for Classification
 (a) No reference to Input Service
 (b) Specific Description [Sec 66F(2)]
 2.Bundled Service
 --- Element of provision of one service is combined
with an element(s) of provision of any other service(s)
 >>> Naturally bundled in the ordinary course of
business
 >>>NOT naturally bundled in the ordinary course of
business

4. Services bundled in the ordinary
course of business
 Treated as consisting entirely of such service
which determines the dominant nature of such a
bundle

5. Services NOT bundled in the
ordinary course of business
 Treated as consisting entirely of such service
which attracts the highest liability of Service Tax

6. Services bundled in the ordinary
course of business –How to
identify ???
 1. Subjective
 -- perception of the service Receiver
 -- rule of majority
 --nature of services
 --others (single package, Not available separately)
 2. NO Formula

7. Services bundled in the ordinary
course of business –examples
 1. Wiring & Telephone Instrument supplied by
Telecom Company
 2. Hotel 4 day-3 night
package…breakfast,lunch ,dinner,club etc
 3. Hotel booked for
conference…accommodation,food,business
center ,fitness center etc