Business Auxiliary Service (BAS) - documentation and evaluation service, Service Tax

[Brijesh Verma]

Whether loan documentation and evaluation services provided by DSA/DMA of Banks falls under BAS or it falls under BSS. Also whether these services would not get benefit of basic exemption under  Notification No. 6/2005 being branded service. A quick response from friends is eagerly awaited.

Posts / Replies

[Rama Krishana]

Where the DSA is representing itself as bank, obviously he is using the brand name of the bank and not entitled for basis exemption of 10 lakhs under notification no. 6/2005. But, if he is representing himself as independent entity and merely a facilitator between the bank and customer, he may avail the benefit of exemption upto 10 lakhs. Regarding classification, loan documentation and evaluation service is depend upon the main service to which this service is related. Since marketing service is falling under BAS, the ancillary service would also fall within the same category.