Service Tax on High Seas Sales, Service Tax

[shaji thomas]

Whether the income earned during High Seas Sales of goods are taxable under Business Auxiliary Service( procurement of inputrs for clients) ?

Posts / Replies

[Surender Gupta]

Nature of transaction is the factory which helps to decide the issue. The activity is taxable under service tax if there is commission / brokerage in between and sale and purchase is being made by the agent. Where the transaction is between two principals and at arms length, pure sale, service tax under business auxiliary service can not be levied.