ERECTION, COMMISSIONING AND INSTALLATION
Statutory Definition of Service liable to tax
When the tax was levied: 1-7-2003 and scope expanded later.
What is liable to tax
1 Any service provided or to be provided to any person, by a commissioning and installation agency (see 2) in relation to erection, commissioning or installation (see 3) [Section 65(105)(zzd)]
2 ‘Commissioning and installation agency’ means any agency providing service in relation to erection, commissioning or installation [section 65(29)].
3 “Erection, commissioning or installation” means any service provided by a commissioning and installation agency, in relation to,—
(i) erection, commissioning or installation of plant, machinery, equipment or structures, whether prefabricated or otherwise; or
(ii) installation of—
(a) electrical and electronic devices, including wirings or fittings therefor; or
(b) plumbing, drain laying or other installations for transport of fluids; or
(c) heating, ventilation or air-conditioning including related pipe work, ductwork and sheet metal work; or
(d) thermal insulation, sound insulation, fire proofing or water proofing; or
(e) lift and escalator, fire escape staircases or travelators; or
(f) such other similar services [Section 65(39a)
Coverage & Service liable to tax
What is covered
Erection, commissioning or installation of plant, machinery, electrical devices, plumbing, insulation, lifts and similar services.
Service will cover all electrical contractors and plumbers. However, general wiring may not be taxable, since only wiring relating to electrical and electronic devices is covered. ‘Fluid’ includes water and hence ordinary plumbing will also get covered.
What is not covered?
If Vat/sales tax is payable on goods involved in the contract, the service will be classifiable under ‘works contract’ service tax.
Erection of Civil Structure not taxable under this head.
Laying of pipeline is not activity of erection. It is not setting up a pipeline but constructed one. Long distance pipeline is not a ‘plant’. Hence, laying of pipeline is not taxable under this head.
Valuation
Value of erection, commissioning or installation may, at the option of assessee, be taken as 33% of gross amount of contract and service tax will be payable accordingly, if he does not avail any Cenvat credit. The gross amount charged will include value of plant, machinery, equipment, structures, parts and other material sold - Notification No. 1/2006-ST dated 1-3-2006.
Service tax is payable even if excise duty paid on entire value of contract including erection charges.
Other issues
Accounting Code - Service Tax : 00440233. Payment of interest, penalty, etc. : 00440234.
Rule for determining export or import of service : 3(ii)
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FRANCHISE SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 1-7-2003 and scope expanded later.
What is liable to tax
1 Any service provided or to be provided to a franchisee, by the franchisor (see 2) in relation to franchise (see 3) [Section 65(105)zze)]
2 ‘Franchisor’ means any person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchisor to enter into franchise on his behalf and the term ‘franchisee’shall be construed accordingly [section 65(48)].
3 “Franchise” means an agreement by which the franchisee is granted representational right to sell or manufacture goods (see 4) or to provide service or undertake any process identified with franchisor, whether or not a trademark, service mark, trade name or logo or any such symbol, as the case may be, is involved [Section 65(47)]
4 ‘Goods’ has the meaning assigned to it in section 2(7) of Sale of Goods Act. [section 65(50)].
Coverage & Service liable to tax
What is covered
Some well known examples of franchise are - Coca-Cola, Pepsi, NIIT, Aptech, McDonald etc.
If vocational training is provided through franchisee, the service will be taxable under ‘franchisee service’.
License Production Agreements where principal allows production of goods bearing his brand name by another person would be covered.
If rights are granted for rendering services identified with the principal on his behalf, such services by the principal to the service recipient would be taxable.
If courier service is provided through franchise, the franchisee will not be eligible for exemption available to small service providers as he is providing service under brand name of other.
Other issues
Accounting Code - Service Tax: 00440237.
Payment of interest, penalty, etc.: 00440238.
Rule for determining export or import of service: 3(iii)
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INFORMATION TECHNOLOGY SOFTWARE SERVICE
Statutory Definition of Service liable to tax
When the tax was levied: 16-5-2008.
What is liable to tax
1 Any service provided or to be provided to any person, by any other person in relation to information technology software (see 2) for use in the course, or furtherance, of business or commerce, including,—
(i) development of information technology software,
(ii) study, analysis, design and programming of information technology software,
(iii) adaptation, upgradation, enhancement, implementation and other similar services related to information technology software,
(iv) providing advice, consultancy and assistance on matters related to information technology software, including conducting feasibility studies on implementation of a system, specifications for a database design, guidance and assistance during the start-up phase of a new system, specifications to secure a database, advice on proprietary information technology software
(v) providing the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products
(vi) providing the right to use information technology software supplied electronically [section 65(105)(zzzze)]
2 “Information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment [section 65(53a)]
[The words ‘acquiring’ in sub-clauses (v) and (vi) above were replaced by the word ‘providing’ with retrospective effect from 16—5-2009. This is only a correction of drafting mistake].
Coverage & Service liable to tax
What is covered
Almost all services in relation to IT software are covered in the definition.
What is covered under other heads?
Some services relating to software will get covered under other heads like commercial coaching, consulting engineer, technical inspection/certification, maintenance and repair, Management Consultancy, Internet Telecommunication, Business Auxiliary Service etc.
Whether service tax can be levied on IT software as such?
Software, branded as well as tailor made, has been held as goods bySupreme Court. It is also specified as ‘goods’ in both Central Excise and Customs Tariff. Many States are imposing Vat on sale of branded as well as unbranded software.
The issue is whether ‘development of information technology software’ itself is a taxable service or ‘service in relation to development of information technology software’ is a taxable service.
Service tax if software downloaded from internet
If software is downloaded from internet from abroad, it will be ‘import of service’ and service tax will be payable by recipient under reverse charge method, except in cases where recipient is an individual and he can establish that the downloaded software is not for business and commerce - confirmed in para 4.1.5 of CBE&C TRU letter F. No.334/1/2008-TRU dated 29-2-2008.
Valuation
Service tax is payable on gross value of services.
If IT software is supplied, Even assuming that service tax is payable, deduction is available of value of goods. Hence, ‘value’ should be ‘Nil’.
Other issues
Accounting Code - Service Tax: 00440452.
Payment of interest, penalty, etc.: 00440450.
Rule for determining export or import of service: 3(iii)
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INTELLECTUAL PROPERTY SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 10-9-2004.
What is liable to tax
1 Any service provided or to be provided to any person, by the holder of intellectual property right (see 2), in relation to intellectual property service (see 3) [Section 65(105)(zzr)] .
2 “Intellectual property right” means any right to intangible property, namely, trademarks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright[Section 65(55a)]
3 ‘Intellectual property service’ means, -
(a) transferring temporarily; or
(b) permitting the use or enjoyment of, any intellectual property right[Section 65(55b)]
Coverage & Service liable to tax
What is covered
Transferring temporarily; or permitting the use or enjoyment of, any intellectual property right.
Brand licensing by brand name owner.
What is not covered?
Copyright service is excluded.
Permanent transfer of Intellectual Property is not taxable.
Technical know-how (which is not patented) should not be taxable under this head.
Exemption
Cess is payable under section 3 of Research and Development Cess Act, 1986, on transfer of technology. If such cess is payable, the holder of intellectual property right will be granted exemption from service tax to the extent of cess paid. - Notification No. 17/2004-ST dated 10-9-2004.Thus, if value of service is Rs 100, tax payable is Rs 12 and cess paid is Rs 5, net service tax actually payable will be Rs 7.
Other issues
Accounting Code - Service Tax: 00440278.
Payment of interest, penalty, etc.: 00440279.
Rule for determining export or import of service: 3(iii)
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INTERIOR DECORATOR
Statutory Definition of Service liable to tax
When the tax was levied: 16-10-1998.
What is liable to tax
1 Any service provided or to be provided to any person, by an interior decorator (see 2) in relation to planning, design or beautification of spaces, whether manmade or otherwise, in any manner [Section 65(105)(q)]
2 “Interior Decorator” means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services relating to planning, design or beautification of spaces whether manmade or otherwise and includes a landscape designer [Section 65(59)]
Coverage & Service liable to tax
What is covered
Planning, design or beautification of spaces
Advice, consultancy, technical assistance relating to planning, design or beautification of spaces
Landscape designing.
Vastu/Feng shui consultants
What is not covered?
No tax on manufacture of furniture, execution of civil work etc.
Valuation
No tax on material, furniture, and temporary structures.
Other issues
Accounting Code - Service Tax: 00440076. Payment of interest, penalty, etc.: 00440077.
Rule for determining export or import of service: 3(i)
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LEGAL CONSULTANCY SERVICE
Statutory Definition of Service liable to tax
When the tax was levied: 1-9-2009.
What is liable to tax
1 Any service provided or to be provided to a business entity, by any other business entity, in relation to advice, consultancy or assistance in any branch of law, in any manner , is a ‘taxable service’: Provided that any service provided by way of appearance before any court, tribunal or authority shall not amount to taxable service. Explanation.—For the purposes of this sub-clause, “business entity” includes an association of persons, body of individuals, company or firm, but does not include an individual.
Coverage & Service liable to tax
What is covered
Advice, consultancy or assistance in any branch of law, in any manner by law firms.
What is not covered?
Any service of appearance before any court of law or any statutory authority.
Service provided by or to individual.
Other issues
Rule for determining export or import of service : 3(iii)
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MANAGEMENT, MAINTENANCE OR REPAIR OF GOODS AND PROPERTIES
Statutory Definition of Service liable to tax
When the tax was levied: 1-7-2003 scope expanded later.
What is liable to tax
1 Any service provided or to be provided to any person, by any person in relation to management, maintenance or repair (see 2) [Section 65(105)(zzg)]
2 “Management, maintenance or repair” means any service provided by— (i) any person under a contract or an agreement; or (ii) a manufacturer or any person authorised by him, - - in relation to, —
(a) management of properties, whether immovable or not
(b) maintenance or repair of properties whether immovable or not; or
(c) maintenance or repair including reconditioning or restoration, or servicing of any goods (see 3) or equipment, excluding motor vehicle.
‘Explanation.– For the removal of doubts, it is hereby declared that for the purposes of this clause - (a) “goods” includes computer software (b) ‘properties’ includes information technology software [Section 65(64)].
3 ‘Goods’ has the meaning assigned to it in section 2(7) of Sale of Goods Act. [section 65(50)].
Coverage & Service liable to tax
What is covered
Services provided during the warranty period by the dealer or any other authorized person is taxable.
Software maintenance is taxable.
AMC contracts taxable.
Service to customers on behalf of manufacturer during warranty taxable when charges paid by manufacturer of OE equipment.
What is not covered?
Services to motor vehicles not taxable under this head
This service cannot be got covered under ‘works contract service’.
Operation and Maintenance (O&M) contract is not taxable, as per Tribunal decisions.
Repairs of roads, airports taxable?
Road repairs are taxable as per Board circular. However, this has been specifically excluded from ‘construction services’. Hence. It is doubtful if these can be taxed under this head.
What is covered under different head?
Maintenance charges collected by housing society/Resident Welfare Association can get covered under club or association service, but exempt if chares upto Rs 3,000 per month.
Valuation
Service tax is not payable on value of material. However, in case of AMCcontracts, it is difficult to find value of material. In Wipro GE Medical Systems v. CST (2009) 18 STT 508 (CESTAT), assessee had adopted 30% of total contract towards value of services. This was considered as reasonable [However, there is no statutory provision to support such valuation].
Other issues
Accounting Code - Service Tax : 00440245. Payment of interest, penalty, etc. : 00440246.
Rule for determining export or import of service : 3(ii)
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MANAGEMENT OR BUSINESS CONSULTANT’S SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 16-10-1998, scope elaborated later.
What is liable to tax
1 Any service provided or to be provided to any person, by a management or business consultant in connection with the management of any organisation or business in any manner [Section 65(105)(r)]
2 “Management or business consultant” means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management [Section 65(65)]
Coverage & Service liable to tax
What is covered
Service in connection with the management of any organisation or business.
ERP software consultancy taxable.
No qualification is required..
What is not covered?
Executory services would not fall under ‘consultancy services’.
Services of supervision and implementation is not a consulting service.
Operation and Maintenance (O&M) contract is not Management Consultancy service.
Maintenance of labour records by industrial law practitioners.
What is covered under different head?
Services rendered in relation to merger and acquisition will be taxed under Banking and other Financial services.
Other issues
Accounting Code - Service Tax: 00440116.
Payment of interest, penalty, etc.: 00440117.
Rule for determining export or import of service: 3(iii)
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MANDAP KEEPER’S SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 1-7-1997.
What is liable to tax
1 Any service provided or to be provided to any person, by a mandap keeper (see 2) in relation to the use of a mandap (see 3) in any manner including the facilities provided or to be provided to such person in relation to such use and also the services, if any, provided or to be provided as a caterer (see 4) [Section 65(105)(m)]
2 “Mandap keeper” means a person who allows temporary occupation of a mandap for consideration for organising any official, social or business function. Explanation.–For the purposes of this clause, social function includes marriage [Section 65(67)]
3 “Mandap” means any immovable property as defined in section 3 of the Transfer of Property Act, 1882 (see 5) and includes any furniture, fixtures, light fittings and floor coverings therein let out for consideration for organising any official, social or business function.
Explanation.– For the purposes of this clause, social function includes marriage [Section 65(66)]
4 “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion[Section 65(24)]
5 ‘Immovable property’ does not include timber, growing crops or grass.[Section 3 of Transfer of Property Act]
Coverage & Service liable to tax
What is covered
Social function includes marriage and taxable
Service provided as a caterer are included
Services of hotel or restaurant will be taxable if it provides ‘mandap’ services.
What is not covered?
Political meetings, film shooting is not social function and not taxable.
Drama and music performances whether covered – there are contrary views.
What is covered under different head?
If it is temporary structure, service will be taxed under Pandal or Shamiana Contractor’s Service.
Renting of art gallery will get covered under Business Exhibition Service.
Valuation
If the mandap keeper provides catering services also and if his bill indicates that his bill is inclusive of charges for catering services, he has to payservice tax only on 60% of his gross charges to client, if he does not avail Cenvat credit. Catering service means supply of substantial meal - Notification No. 1/2006-ST dated 1-3-2006.
High tea or unlimited breakfast is ‘substantial meal’.
No tax on general donations received.
Exemption
Use of precincts of a religious place as mandap is exempted from service tax - notification No. 14/2003-ST dated 20-6-2003.
Other issues
Accounting Code - Service Tax : 00440035. Payment of interest, penalty, etc. : 00440036.
Rule for determining export or import of service : 3(ii)
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MANPOWER RECRUITMENT OR SUPPLY AGENCY’S SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 7-7-1997.
What is liable to tax
1 Any service provided or to be provided to any person, by a manpower recruitment or supply agency (see 2) in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner - Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, recruitment or supply of manpower includes services in relation to pre-recruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate [Section 65(105)(k)]
2 “Manpower recruitment or supply agency” means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person [Section 65(58)]
Coverage & Service liable to tax
What is covered
Academic/educational institutes providing recruitment services are taxable.
Services of labour contractors are taxable.
Service of providing employees of Agency to business or industrial organizations for a specific period is taxable.
Pre-recruitment services also covered.
What is not covered?
No service tax if employees hired directly without intermediary
Execution of work on contract basis is not manpower supply service.
Mere charge on man-hour basis does not mean it is manpower supply service.
Valuation
Service tax is to be charged on the full amount of consideration for the supply of manpower, whether full-time or part-time. The value includes recovery of staff costs from the recipient e.g. salary and other contributions. For example, if labour charges are Rs. 1,00,000, provident fund, ESIC etc. towards the labour is Rs. 10,000 and service charges for procuring labour are (say) Rs. 12,000, service tax should be payable only on Rs. 1,22,000 (Issue is arguable).
No tax on reimbursement of expenses incurred on behalf of Principal.
Other issues
Accounting Code - Service Tax : 00440060. Payment of interest, penalty, etc. : 00440060.
Rule for determining export or import of service : 3(iii)
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OUTDOOR CATERER’S SERVICES
Statutory Definition of Service liable to tax
When the tax was levied
10-9-2004.
What is liable to tax
1 Any service provided or to be provided to any person, by an outdoor caterer [Section 65(105)(zzt)]
2 “Outdoor caterer” means a caterer (see 3) engaged in providing services in connection with catering at a place other than his own, but including a place provided by way of tenancy or otherwise by the person receiving such services [Section 65(76a)]
3 “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion[Section 65(24)]
Coverage & Service liable to tax
What is covered
Catering at a place other than his own, but including a place provided by the person receiving such services
Supply of food to airlines for in-flight service to passengers is taxable.
Canteen service taxable if service provided to employer but not when service directly provided to employees.
Catering services provided on railway taxable.
What is not covered?
Home delivery of food not taxable
Valuation
Outdoor caterer can opt to pay service tax on 50% of his Bill amount if the Bill or challan issued indicates that it is inclusive of charges for supply of substantial meal, and he does not take Cenvat credit.
In LSG Sky Chefs v. CST (2009) 19 STT 440 (CESTAT), assessee, who was providing catering services to airlines, paid service tax on amounts collected towards handling, transportation and loading charges but not on cost of food as it paid sales tax/Vat on cost of food. It was held thatservice tax cannot be imposed on value of goods – same view in The Grand Ashok v. CST (2009) 19 STT 435 (CESTAT).
Other issues
Accounting Code - Service Tax : 00440051. Payment of interest, penalty, etc. : 00440052.
Rule for determining export or import of service : 3(ii)
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PANDAL OR SHAMIANA CONTRACTOR’S SERVICE
Statutory Definition of Service liable to tax
When the tax was levied: 10-9-2004.
What is liable to tax
1 Any service provided or to be provided to any person, by a pandal or shamiana contractor in relation to a pandal or shamiana (see 2) in any manner and also includes the services, if any, provided or to be provided as caterer (see 3) [Section 65(105)(zzw)]
2 ‘Pandal or shamiana’ means a place specially prepared or arranged for organizing an official, social or business function. Explanation.–For the purposes of this clause, social function includes marriage [Section 65(77a)] .
3 “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion[Section 65(24)]
Coverage & Service liable to tax
What is covered
‘Pandal or shamiana’ is temporary structure prepared or arranged for organizing an official, social or business function.
Social function includes marriage
Supply of furniture, fixtures, lights and lighting fittings, floor coverings and other articles for use in pandal or shamiana taxable even if the contractor himself does not supply ‘pandal or shamiana’.
What is not covered?
No tax on religious functions.
What is covered under different head?
If it is permanent structure, service will be taxed under ‘mandap’ service.
Valuation
If a pandal or shamiana contractor provides catering services of full meals, tax will be payable only on 70% of the gross amount charged to client, if he does not avail any Cenvat credit -Notification No. 1/2006-ST dated 1-3-2006.
Other issues
Accounting Code - Service Tax : 00440054. Payment of interest, penalty, etc. : 00440055.
Rule for determining export or import of service : 3(ii)
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PHOTOGRAPHY SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 16-7-2001.
What is liable to tax
1 Any service provided or to be provided to any person, by a photography studio or agency (see 2) in relation to photography (see 3), in any manner[Section 65(105)(zb)]
2 “Photography studio or agency” means any professional photographer or any person engaged in the business of rendering service relating to photography [Section 65(79)]
3 “Photography” includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photography [Section 65(78)]
Coverage & Service liable to tax
What is covered
“Photography” includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photography
What is not covered?
Preparing voter’s identity card for Election Commission is not ‘business activity’ and hence not taxable
X-ray or CT scan will not be covered.
What is covered under different head?
Collection centre not taxable under photography services. They may get covered under Business Auxiliary Service.
Valuation
In Shilpa Colour Lab v. CCE (2007) 8 STT 102 = 8 VST 554 (CESTAT), Sudha Digital Images v. CCE (2008) 17 STT 288 (CESTAT),
Sood Studios v. CCE (2009) 19 STT 453 (CESTAT) etc., it has been held that deduction of value of material used while providing photography service will be available [There are contrary views also].
Other issues
Accounting Code - Service Tax: 00440127.
Payment of interest, penalty, etc.: 00440130.
Rule for determining export or import of service: 3(ii)
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PRACTICING CA/ICWA/CS SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 16-10-1998.
What is liable to tax
1A Any service provided or to be provided to any person, by a Practising Chartered Accountant (see 2) in his professional capacity in any manner[Section 65(105)(s)]
1B Any service provided or to be provided to any person, by a Practising Cost Accountant (see 23) in his professional capacity in any manner [Section 65(105)(t)]
1C. Any service provided or to be provided to any person, by a Practising Company Secretary (see 4) in his professional capacity in any manner[Section 65(105)(u)]
2 “Practising Chartered Accountant” means a person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 and includes any concern engaged in rendering services in the field of chartered accountancy [Section 65(83)]
3 “Practising Cost Accountant” means a person who is a member of the Institute of Cost and Works Accountants of India and is holding a certificate of practice granted under the provisions of the Cost and Works Accountants Act, 1959 and includes any concern engaged in rendering services in the field of cost accountancy [Section 65(84)]
4 “Practising Company Secretary” means a person who is a member ofthe Institute of Company Secretaries of India and is holding a certificate of practice granted under the provisions of the Company Secretaries Act, 1980 and includes any concern engaged in rendering services in the field of company secretaryship [Section 65(85)]
Coverage & Service liable to tax
What is covered
Service by a Practising Chartered Accountant/Cost Accountant/Company Secretary in his professional capacity.
Verification of books, accounting procedure and recording, certification, management consultancy, acting as liquidator, trustee all taxable.
What is not covered?
Authorship, directorship, teaching, preparation of electricity bills etc are not taxable as not provided under professional capacity.
What is covered under different head?
Services of electricity billing and related services to electricity distribution company not taxable as not in professional capacity (This may get covered under BAS, but borderline case).
Valuation
Tax is payable on reimbursement of expenses incurred while providing professional service.
Exemptions
Services provided by practising CA/CWA/CS in his professional capacity to a client, relating to representing before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice, are exempt from service tax. (Notification No. 25/2006-ST dated 13-7-2006).
Other issues
Accounting Code - Service Tax: 00440092, 096 and 100
Payment of interest, penalty, etc.: 00440093, 097 and 101 (CA, CWA and CS respectively)
Rule for determining export or import of service: 3(ii)
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REAL ESTATE AGENT’S SERVICES
Statutory Definition of Service liable to tax
When the tax was levied: 16-10-1998.
What is liable to tax
1 Any service provided or to be provided to any person, by a real estate agent (see 2) in relation to real estate [Section 65(105)(v)]
2 ‘Real Estate Agent’ means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant (see 3) [Section 65(88)]
3 ‘Real Estate Consultant’ means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate [Section 65(89)]
Coverage & Service liable to tax
What is covered
Service in relation to sale, purchase, leasing or renting, of real estate. Services of Real estate consultant.
Advice, consultancy or technical assistance relating to real estate.
Other issues
Accounting Code - Service Tax: 00440104.
Payment of interest, penalty, etc.: 00440105.
Rule for determining export or import of service : 3(i)
Disclaimer: In this note, we have attempted to summarise some of the significant aspects to be kept in mind by readers to ensure compliance of tax laws and regulations. Readers should ensure to verify specific provisions as applicable to each case before taking any business decisions. It would be pertinent to note that some changes are being made to the tax laws and rules and regulations on a continuous basis by way of notifications, clarifications etc issued by the department based on their practical experience in implementing the legislation.
It may be noted that nothing contained in this note should be regarded as our opinion. Professional advice should be sought for applicability of legal provisions based on specific facts. Though reasonable efforts have been taken to avoid errors or omissions in this note we are not responsible for any liability arising to readers directly or indirectly due to any mis-statements or error contained in this note. It must be noted that the views expressed in the note are based on our understanding of the law and regulations as published by the Government authorities and we may or may not agree or subscribe to such views.
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