2011 (12) TMI 110 - AT - Service Tax

Service provided by visa facilitator Held that - Service provided by visa facilitator in the form of assistance to individuals who intend to travel abroad, directly, does not fall under any taxable service under Section 65(105) of Finance Act, 1994. Accordingly, Stay Petition for waiver of pre-deposit of amounts involved is also allowed. - Decided in favor of assessee.

Summary

Issues:
Service tax liability on income/commission charged for obtaining passport and visa.

Analysis:
The Stay Petition was filed for waiver of pre-deposit of service tax amount, interest, and penalties under the Finance Act, 1994. The issue revolved around the Service Tax liability on the appellant for the income/commission received for providing passport and visa services. After hearing both sides, the Tribunal found that the appeal could be disposed of by allowing the Stay Petition for waiver of pre-deposit. The Circular No. 137/6/2011-S.T. clarified that services provided by visa facilitators directly to individuals intending to travel abroad do not fall under taxable services under Section 65(105) of the Finance Act, 1994. This circular explained that visa facilitators assisting individuals in obtaining visas do not act as agents of embassies and hence, service tax is not leviable as business auxiliary service or support service for business or commerce. The circular specified that service tax is only applicable if services other than direct assistance to individuals for obtaining visas fall under taxable services. The Tribunal relied on this circular to set aside the impugned order and allowed the appeal.

This judgment highlights the importance of Circular No. 137/6/2011-S.T. in clarifying the Service Tax liability for visa facilitators assisting individuals in obtaining visas. It emphasizes that service tax is not applicable when visa facilitators directly assist individuals in completing immigration formalities and collecting charges for their services. The circular distinguishes between services provided directly to individuals for obtaining visas and other services falling under taxable categories. The Tribunal's decision to rely on this circular to allow the appeal signifies the significance of such clarifications in resolving Service Tax disputes effectively.