This document discusses the scope of taxation of services under the new service tax regime in India. It defines what constitutes a service according to law. It outlines the key aspects of a service such as the requirement for an activity to be carried out for consideration. It also describes the nine categories of declared services that are explicitly included in the scope of service tax. Finally, it provides examples of activities that may now be taxed under the new regime.
Meaning of the term "Service" in Service tax as per Finance Act, 1994Abhinav Chhabra
A comprehensive analysis of the definition of the term "Service" as per Finance Act, 1994. This presentation will guide about what all are the services that can be liable to service tax subject to other provisions of the Finance Act, 1994.
Meaning of the term "Service" in Service tax as per Finance Act, 1994Abhinav Chhabra
A comprehensive analysis of the definition of the term "Service" as per Finance Act, 1994. This presentation will guide about what all are the services that can be liable to service tax subject to other provisions of the Finance Act, 1994.
Declared Services (Section 66E of Finance Act, 1994)Rajat Agrawal
A presentation on Section 66E of Finance Act, 1994 - Declared Services. The presentation was made in an attempt to be simple, yet comprehensive for seminar purposes.
Declared Services (Section 66E of Finance Act, 1994)Rajat Agrawal
A presentation on Section 66E of Finance Act, 1994 - Declared Services. The presentation was made in an attempt to be simple, yet comprehensive for seminar purposes.
What is the contribution of Service Tax in Indian Economy?
How to check whether it is a service or not?
What kind of services are not taxable at all?
What are the exemptions to various type of services?
What is the definition of service?
What are declared services?
What are outside the purview of services?
All about service tax on banking services - Dr Sanjiv AgarwalD Murali ☆
All about service tax on banking services - Dr Sanjiv Agarwal - Article published in Business Advisor, dated February 25, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
3. Scope of Taxation of Services
This Presentation Covers
• Scope of „Service‟ under New Regime –
Inclusions / Exclusions, Services of Employees/
Directors/ employers /Charge of Tax
• Declared Services including Valuation
• Bundled Services – Classification Issues
3
4. What is Service
„Service' has been defined in clause (44) of the section 65B
and means –
any activity
For a consideration
carried out by a person for another
and includes a declared service (66E)
4
5. Scope of services under Service Tax
Services on which Service Tax shall be attracted comprise of :
Those services which satisfy the definition of service u/s 65B(44)
Nine specified declared services u/s 66E
Those services which do not find place in negative list of services
u/s 66D
Those services which are not exempt from levy of Service Tax
under Notification No. 25/2012-ST dated 20.06.2012
to be contd….
5
5
6. Scope of services under Service Tax
Services on which no Service Tax shall be payable comprise of :
• Services which are specifically excluded from the scope of
definition of service itself u/s 65B(44)
• 17 broad services specified in the negative list of services u/s
66D
• Services which are exempt from levy of Service Tax under N.
No. 25/2012-ST dated 20.06.2012
• Specified services otherwise exempt under specific
notifications
• Activities where service provider and service receiver are in
non –taxable territory
6
6
7. The New Taxability Concept
SERVICE FOR A CONSIDERATION
9 DECLARED SERVICES
E: Employee
M: Money
A: Actionable claim E - MAGIC TEST
G: Goods
I: Immovable property
C: Court Fee
1. Non - 2.
Taxable Negative
territory
(POPS) list (17)
3.
Exemptions
(39)
Taxable
7
8. What is Service
Activity must be for a consideration (nexus / reciprocity)
Activity – includes both activity as well as non-activity
Consideration – includes both monetary and non
monetary consideration.
Two persons are involved –
Service provider
Service receiver
Only services provided by one person to another are
taxable
Person – natural as well as artificial
8
9. What is Service
Activity
Not defined in the Act
In common understanding, activity includes –
An act done
A work done
A deed done
An operation carried out
Execution of an act
Provision of a facility etc.
Activity could be active or passive and forbearance to act
Agreeing to an obligation to refrain from an act or to tolerate
an act or a situation - listed as a declared service u/s 66E
9
10. What is Service
Consideration
Means everything received or recoverable in return for a
provision of service which includes -
○ Monetary payment
○ Non-monetary payment
○ Deferred consideration
Under Indian Contract Act, 1872, Consideration means -
“When, at the desire of the promisor, the promisee or any other
person has done or abstained from doing, or does or abstains from
doing, or promises to do or to abstain from doing, something, such
act or abstinence or promise is called a consideration for the
promise”
10
11. What is Service
Activity for a Consideration
Activity should be carried out by a person for a
consideration
Activity without consideration like-
○ Donation
○ Gifts
○ Free charities
outside the ambit of service
Charity for consideration would be service and
taxable unless otherwise exempted
11
12. What is Service
Money- 65B(33)
“Money" means legal tender, cheques, promissory note, bill of
exchange, letter of credit, draft, pay order, traveller cheques, money
order, postal or electronic remittance or any similar instrument but
shall not include any currency that is held for its numismatic value
Actionable Claim –Section 3 of Transfer of Property Act, 1882
• Claim to unsecured debts
• Claim to beneficial interest in movable property not in possession of
claimant
• Right to insurance claim
• Arrears of rent
• Lottery claims
12
13. What is Service
Tax on Money Remittance (Circular No. 163 dated 10.7.2012)
No service tax on foreign currency remitted to India from
overseas
Amount of remittance comprises money
Service excludes money transactions
Even fee for remittance is not taxable (POPS)
Sender of money outside India - bank / company
remitting money is located outside India
Fee charged by Indian bank - remitter located outside
India (not taxable as per POPS)
13
14. What is Service
Person-65B(37)
"person" includes,––
• an individual,
• a Hindu undivided family,
• a company,
• a society,
• a limited liability partnership,
• a firm,
• an association of persons or body of individuals, whether incorporated
or not,
• Government,
• a local authority, or
• every artificial juridical person, not falling within any of the above
14
15. What is Service
Government – Not defined
Section 3 (22) of General Clause Act, 1897
Includes Central/State Government/ Union Territory
Actions taken in the name of President/ Governor
Most of services provided by Government are in
Negative List or reverse charge is applicable
15
16. What is Service : Exclusions
'Service' does not include -
any activity that constitutes only a transfer in title of goods or immovable
property by way of sale, gift or in any other manner.
Sale of developed plots is a service (Narne Constructions Pvt. Ltd. v
UOI 2013 (29)STR 3 (SC)
a transfer, delivery or supply of goods which is deemed to be a sale of goods
within the meaning of clause (29A) of article 366 of the Constitution
a transaction only in money or actionable claim
a service provided by an employee to an employer in the course of the
employment.
fees payable to a court or a tribunal set up under a law for the time being in
force
16
17. What is Service
This scope shall not apply to –
a) functions performed by M.P., M.L.A., Members of
Panchayats / Municipalities who receive any consideration
in performing the functions of that office as such member;
or
b) duties performed by any person who holds any post in
pursuance of the provisions of the Constitution in that
capacity; or
c) duties performed by any person as a Chairperson or a
Member or a Director in a body established by the Central
Government or State Government or local authority and
who is not deemed as an employee before the
commencement of this section.
17
18. What is Service
For the purpose of scope of service -
(a) an unincorporated association or a AOP and a member thereof shall be
treated as distinct persons;
(b) an establishment of a person in the taxable territory and any of his other
establishment in a non-taxable territory shall be treated as establishments of
distinct persons.
(c) A person carrying on a business through a branch or agency or
representational office in any territory shall be treated as having an
establishment in that territory
18
19. Employer‟s Facilities to Employees
Draft Circular (F. No. 354 /127/2012-TRU dated 27.7.2012) issued for
clarification on certain activities / facilities / reimbursements to employees by
the employers
(a) Treatment of supplies made by the employer to employees
Amount deducted from salary / paid for service provided by the employer
to employee is for consideration and hence taxable
Employer who provides some services free of cost (e.g.
crèche, gymnasium or a health club) are not liable to tax
(b) Treatment of reimbursements made by the employer to the employee
Reimbursements of expenditure incurred on behalf of the employer in
course of employment would not amount to a service, hence non-taxable
19
20. Employer‟s Facilities to Employees
(c )Treatment of supplies and reimbursements made by the
employer to ex-employees/ pensioners
Same tax treatment for ex- employees of the company –
Reimbursement of expenses on behalf of
company – non-taxable ?
Facilities for consideration – taxable
Facilities free of cost - non taxable ?
20
21. Director‟s Services to Company -
Taxable
Director‟s services to the company are taxable w.e.f
1.7.2012
Sitting fees, commission, bonus, etc. are subject to
service tax
W.e.f. 1.7.2012 upto 6.8.2012, service tax was to be
deposited by the directors while from 7.8.2012 vide
Notification No. 45/2012, Service Tax on such services
will be deposited by the company under reverse charge
WTDs /MDs /EDs who are under contractual
employment with the company and receive salary or
remuneration from the company will not be covered -
considered as employees of the company
21
22. Director‟s Services to company-
Taxable
Interest paid on loan by director to company, dividend on
shares, other professional charges on account of services not
rendered as a director (in professional capacity) are not liable to
Service Tax under reverse charge
In case of nominee director, the nominating company who receives
fees will be liable to pay service tax
The invoice / receipt to be issued by the directors within 30 days
In case of nominee directors, the invoice will be issued by the
nominating company if payment made to such Company
In the case of Government nominees, the services shall be deemed
to be provided by the Government but liable to be taxed under
reverse charge basis (support service)
22
23. Examples of new activities which may be taxed
Non commercial construction for non-government purpose
Private roads (not meant for general public)
Residential construction of more than one unit
Commercial artists/performers
Film actors/ directors /reality show judges
Tourism boats
Board director‟s sitting fee
Non-compete fee
Arbitrators to business entities
Discourses and lectures/ yoga classes
Public parking
to be contd.. 23
24. Examples of new activities which may be taxed
Banking services to Government
Unrecognized IPRs
Services to RBI
Hotel telephone calls
Video library facilities by hotels
Matrimonial sites
Astrologers
Laundry services
Works contracts for movable properties
All sub-contracts except exempted works contracts
On board catering and other facilities
Executive Lounge at railway station/ airport
24
25. Charge of Service Tax
Section 66 (upto 30.6.2012)
There shall be levied a tax @ 12 percent of
the value of taxable services as referred to
in section 65(105), i.e., taxable services
Not to apply w.e.f. 1.07.2012
25
26. Charge of Service Tax
Section 66B (W.e.f 1.7.2012)
There shall be levied a tax at the rate of
twelve per cent on the value of all
services, other than those services specified
in the negative list, provided or agreed to be
provided in the taxable territory by one
person to another and collected in such
manner as may be prescribed
26
27. Charge of Service Tax
Essential ingredients for charge of Service Tax
There should be a service involved
Such service should not be one included in the negative list
as defined in section 66D.
Services should be provided or agreed to be provided.
Services should be provided in the taxable territory only.
Services should be provided by one person to another
person.
Tax shall be levied on value of services so provided or
agreed to be provided.
Collection shall be in prescribed manner.
27
28. Charge of Service Tax
Provided or to be provided v. provided or agreed to be
provided
Before actual provision of service is made, all relevant
information on chargeable event must be known
On account advance payment without any identification of
services or activities may not be liable to service tax
Services which have only been agreed to be provided but
are yet to be provided are taxable
Receipt of advances for services agreed to be provided
become taxable before the actual provision of service
Advances that are retained by the service provider in the
event of cancellation of contract of service by the service
receiver become taxable as these represent consideration
for a service that was agreed to be provided.
28
29. Clause 44 of section 65B defines service – it includes a declared service.
There are 9 categories of services or activities as declared services implying that
on all such nine declared services, Service Tax shall be payable
Does not include any such transfer, delivery or supply of any goods which is
deemed to be a sale within the meaning of Article 366(29A) of the Constitution
of India.
What is declared services is defined in section 65B(22) to mean any activity
carried out by a person for another person for a consideration and declared as
such under section 66E of the Act.
They are amply covered by the definition of service but have been declared with
a view to remove any ambiguity for the purpose of uniform application of law all
over the country
29
30. Following constitute Declared Services (Section 66E)
Renting of immovable property;
Construction of a complex, building, civil structure or a part
thereof, including a complex or building intended for sale to a buyer, wholly
or partly, except where the entire consideration is received after issuance of
certificate of completion by a competent authority;
Temporary transfer or permitting the use or enjoyment of any intellectual
property right;
Development, design, programming, customization, adaptation, up
gradation, enhancement, implementation of information technology software;
30
31. Agreeing to an obligation to refrain from an act, or to tolerate an act
or a situation, or to do an act;
Transfer of goods by way of hiring, leasing, licensing or any such
manner without transfer of right to use such goods;
Activities in relation to delivery of goods on hire purchase or any
system of payment by installments ;
Service portion in execution of a works contract;
Service portion in an activity wherein goods, being food or any other
article of human consumption or any drink (whether or not
intoxicating) is supplied in any manner as part of the activity.
31
32. Declared Services
Renting of Immovable Property
Renting (Section 65B (41)) -
allowing, permitting or granting access, entry, occupation, usage or any
such facility, wholly or partly, in an immovable property, with or without the
transfer of possession or control of the said immovable property and
includes letting, leasing, licensing or other similar arrangements in
respect of immovable property
Renting of certain kinds of immovable properties is specified in the negative
list
• Renting of vacant land, with or without a structure incidental to its
use, relating to agriculture.
• Renting of residential dwelling for use as residence
• Renting out of any property by Reserve Bank of India
• Renting out of any property by a Government or a local authority to a
non-business entity
32
33. Declared Services
Renting of Immovable Property
Exemptions to Renting of Immovable property
Threshold level exemption up to Rs. 10 lakh.
Renting of precincts of a religious place meant for general public is exempt.
Renting of a hotel, inn, guest house, club, campsite or other commercial places
meant for residential or lodging purposes, having declared tariff of a room
below rupees one thousand per day or equivalent is exempt.
Renting of immovable property to / by educational institution in respect of
exempted education (W.e.f. 1.04.2013)
33
34. Declared Services
Nature of Activity Taxability
Renting of property to educational body Not chargeable to service tax; exemption
Renting of vacant land for animal Not chargeable to service tax as it is covered
husbandry or floriculture in the negative list entry relating to agriculture
Permitting use of immoveable property Chargeable to service tax as permitting usage
for of
placing vending/dispensing machines space is covered in the definition of renting
Allowing erection of communication Chargeable to service tax as permitting usage
tower of
on a building for consideration. space is covered in the definition of renting
Renting of land or building for Chargeable to service tax as there is no
entertainment or sports specific
exemption.
Renting of theatres by owners to film Chargeable to service tax as the arrangement
distributors amounts to renting of immovable property.
Renting of immovable property outside India not taxable in India even if owners
are in India 34
35. Declared Services
Construction Activities [Section 66E (b)]
Construction activities means construction of a complex, building, civil
structure or a part thereof, including a complex or building intended for
sale to a buyer, wholly or partly, except where the entire consideration
is received after issuance of completion certificate by the competent
authority.
It includes construction of -
Complex
Building
Civil structure or part thereof
Complex or building intended for sale to a buyer except where
entire consideration is received after issuance of completion
certificate by the competent authority.
Actual sale after construction-if any consideration received before
such completion certificate, it will also be taxed.
35
36. Declared Services
Temporary transfer or permitting the use or enjoyment of any
intellectual property right [Section 66 E (c)]
Intellectual property right‟ has not been defined but Intellectual property
right includes :
Copyright
Patents
Trademarks
Designs
Any other similar right to an intangible property
36
37. Declared Services
Intellectual Property Rights
Examples of IPRs
Patents - New technical, concepts,
inventions
Copyright - Text, graphics, software, data
compilations, art, music
Trademarks - Brands (Services/ Products)
image and reputation
Confidential Information - Ideas, information, know-how,
processes etc.
Design Rights - Form and appearance,
decoration, apparels
37
38. Declared Services
Intellectual Property Rights
What is taxed in IPR
all IPRs (whether recognized in law or not)
excluding copy rights
temporary transfer of IPRs
permitting the use of IPRs
enjoyment of IPRs
38
39. Declared Services
Intellectual Property Rights
Copyrights as IPRs are exempted which include :
literary work
dramatic work
musical work
artistic works
cinematograph films ( for exhibition in halls w.e.f
1.4.2013)
39
40. Declared Services
Transfer of goods by hiring, leasing, licensing [66E(f)]
There should be transfer of goods involved
Such transfer of goods should be by way of –
hiring
leasing
licensing, or
any such manner
Such transfer should be without transfer of right to use
such goods.
Excludes intangible goods
Only goods [section 65B(25)] covered
40
41. Declared Services
Transfer of Goods by Hiring etc
Examples of transfer without right to use
Car on hire with driver – right to use not transferred
Conditional supply of equipment – not free to use goods
Bank lockers – possession not transferred to hirer
Scaffolding structure for temporary purpose – no transfer of right /
effective control and possession
Hiring of Pandal / Shamiyana – No effective control
Hiring of audio visual equipment with attendant – no transfer of right
/ possession
41
42. Works Contract [65B(54)]
“Works Contract” means a contract wherein transfer of
property in goods involved in the execution of such contract
is leviable to tax as sale of goods and such contract is for
the purpose of carrying out
construction, erection, commissioning, installation, completi
on, fitting out, repair, maintenance, renovation, alteration of
any movable or immovable property or for carrying out any
other similar activity or a part thereof in relation to such
property.
42
43. Works Contract covers
Construction
Erection
Commissioning
Completion
Fitting out
Repair
Maintenance
Renovation
Alteration, or
Any other similar activity or part there of
43
44. Some issues in works contracts
Labour contracts Excluded
Repair & Maintenance of motor vehicles yes if property in goods
transferred in execution of WC
Construction of pipeline / conduit yes, structures on land
Painting / repair / renovation of building yes if involves provision of
, wall tiling, flooring etc. material also
Erection/commissioning installation of yes if transfer of property in
plant/ machine etc goods is involved and machinery
etc
44
45. Value of service portion in execution of work contract = gross amount charged for works
contact less value of transfer of property in goods involved in execution of works contract
Gross amount includes Gross amount does not include
Labour charges for execution of Value of transfer of property in goods involved in the
the works execution of the said works contract.
Amount paid to a sub-contractor where value added tax or sales tax has been paid or payable
for labour and services on the actual value of property in goods transferred in the
Charges for planning, designing execution of the works contract, then such value adopted for
and architect’s fees the purposes of payment of value added tax or sales tax,
shall be taken as the value of property in goods transferred
in the execution of the said works contract. (Rule 2A
explanation)
Cost of establishment of the Value Added Tax (VAT) or sales tax, as the case may be, paid,
contractor relatable to supply of if any, on transfer of property in goods involved in the
labour and services and other execution of the said works contract
similar expenses relatable to
supply of labour and services
Profit earned by the service
provider relatable to supply of
labour and services
45
46. Alternative valuation model (Rule 2A of Valuation Rules)
Where works contract is for… Value of the service portion shall be…
(A) execution of original works forty percent of the total amount charged
for the works contract
(B) maintenance or repair or seventy per cent of the total amount
reconditioning or restoration or servicing charged including such gross amount
of any goods
(C) in case of other works contracts, not sixty percent of the total amount charged
included in serial nos. (A) and (B) above, for the works contract
including contracts for maintenance,
repair, completion and finishing services
such as glazing, plastering, floor and wall
tiling, installation of electrical fittings.
46
47. Valuation of service portion in Works Contract
Total Value = Sum total of
+ gross amount charged
+ value of goods and services supplied free of
cost for use in or in relation to execution of WC
whether us same contract /any other contract
+ value of land charged as part of total
consideration
- amount charged for such goods / services, if
any
- VAT levied, if any
If value of FOC goods / services is not ascertainable, it will be
determined on basis of fair market value having close resemblance
FMV based on generally accepted accounting principles
No Cenvat available on goods / inputs used in works contract
47
48. Principles of Interpretation of specific description of services [section 66F]
Section 65A dealing with classification of taxable services omitted w.e.f.
1.7.2012
useful in deciding whether a service falls in negative list / exemptions /
declared services
composite v bundled service
bundled service –
collection of services / tied up services
more than one service
element of one service combined with element of provision of other
service (s).
Examples - Mailing done by RTI, Air traveling and catering therein
Earlier issue – which taxable service
Now – whether any activity is a „service‟ or not a „service‟.
48
49. Rule 1
Reference to main service can not be used for services used for providing
the main service
If some service is provided with reference to provision of main service,
it does not be come main service,
Related services do not take the colour of main service.
Examples
Provision of access to any road or bridge on payment of toll
Security services
IT related services
Contract commission
Transportation of passengers by rail
○ Air travel agency
○ Tour operators
49
50. Rule 2
Most specific description to be preferred over more general
description for services capable of differential treatment for
any purpose based on its description
Examples
Real estate agent for immovable property
•If taxed as intermediary, his location is important
•If taxed as immovable property, location of property is important
Outdoor catering by pandal & shamiana / convention to be taxed as
specific combined entry exist for abatement and not as individual
services 50
51. Rule 3
Taxability of naturally bundled services in ordinary course
of business
If various elements of a bundled service are naturally
bundled in the ordinary course of business, it shall be treated
as provision of a single service which gives such bundle its
essential character
Perception of service provider / service receiver
Trade practice
Example
•Packaged hotel accommodation for convention delegates
may include
Hotel room accommodation
Breakfast
Tea / coffee during conference
to be contd…
51
52. Bundled Services
Access to gym / health club / pool
Internet
Business centre
Sight seeing
Could be considered as naturally bundled convention services as each
activity is taxable but does not provide essential character and taxed
accordingly
Indicators of naturally bundled services
There is a single price or the customer pays the same amount, no matter
how much of the package they actually receive or use
The elements are normally advertised as a package.
The different elements are not available separately.
The different elements are integral to one overall supply – if one or more is
removed, the nature of the supply would be affected.
Each case to be individually examined
52
53. Bundled Services
Rule 4
Taxability of services not naturally bundled in ordinary
course of business
If various elements of a bundled service are not naturally
bundled in the ordinary course of business, it shall be
treated as provision of a service which attracts the
highest amount of service tax.
Examples
Renting of two floors or two portions of building by a common
agreement (treated as commercial use)
Management of event covering advertisement, promotion, space
booking, photography, videography, public relation etc.
53
54. THANK YOU
FOR
YOUR
PRECIOUS TIME
AND
ATTENTION
Dr. Sanjiv Agarwal
FCA, FCS, Jaipur
asandco@gmail.com
sanjivservicetax@gmail.com
54