The drill
to identify whether you are providing taxable service is very simple. Pose the
questions listed in Step 1 and Step 2 below-
Step 1
To determine whether you are providing a ‘Service’
Pose the following questions to
yourself:
Sr.No
|
Question
|
Answer
|
1
|
2
|
|
1
|
Am I doing an activity (including, but not limited to, an activity
specified in section 66E of the Act) for another person*?
|
Yes
|
2
|
Am I doing such activity for a consideration?
|
Yes
|
3
|
Does this activity consist only of transfer of title in goods or
immovable property by way of sale, gift or in any other manner?
|
No
|
4
|
Does this activity constitute only 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
|
No
|
5
|
Does this activity consist only of a transaction in money or
actionable claim?
|
No
|
6
|
Is the consideration for the activity in the nature of court fees for
a court or a tribunal?
|
No
|
7
|
Is such an activity in the nature of a service provided by an employee
of such person in the course of employment?
|
No
|
8
|
Is the activity covered in any of the categories specified in
Explanation 1 or Explanation 2 to clause (44) of section 65B of the Act
|
No
|
[*if you are a person doing business through an establishment located in
the taxable territory and another establishment located in non taxable
territory OR an association or body of persons or a member thereof then please
see Explanation 3 to clause (44) of section 65B of the Act before answering this question]
If the answer to the above questions is as per the answers indicated in
column 3 of the table above THEN you are providing a service.
Step 2
To determine whether service provided by you is taxable
If you are providing a ‘service’ (Step 1) and then pose the following
questions to yourself-
Sr.No
|
Question
|
Answer
|
1
|
2
|
|
1
|
Have I provided or agreed to provide the service?
|
Yes
|
2
|
Have I provided or agreed to provide the service in the taxable
territory?
|
Yes
|
3
|
Is this activity entirely covered in any of the services described in
the negative list of services specified in section 66D of the Act?
|
No
|
If the answer to the above questions
is also as per the answers given in column 3 of the table above THEN you are
providing a ‘taxable service’.
Thanks...
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