Taxability of Editing and content management services, Service Tax

[MANOJ AGGARWAL]

A Co. renderes Editing and content management services for a Books Publishing Company which publishes books only for " Education". Notification 14/2004 amended by 19/2005 exempts Business Auxiliary Services for "Education" purposes. Is the aforesaid case covered by this exemption notification ? Or, if this case is covered by Business Support Services, is there any notification by which Business support services for " Education" are also exempt ??

Posts / Replies

[Surender Gupta]

To be very frank, this is issue very much under dispute. However, if you see the language of the "Business Support Service", you would find that any service which is provided in relation to 'Business or Commerce' is liable to service tax. In the light of this, you may decide that whether editing service is in relation to business or commerce or not.

[MANOJ AGGARWAL]

The queries are unanswered in the follwing respects : - whether it is covred under Business Auxiliary Services ? Secondly, even if it is taken under Business Support, whether is there any notification by which Business support services for " Education" are also exempt ??

[Madhukar N Hiregange]

Under the said notification not only BAS under education is exempt even printing is exempt. In my view though there maybe a samll risk, the entry which is more specific is to be considered and BAS maybe more appropriate. Further the defintion of BSS if applicable can replace 90 entries!!! I think only those services or ones which are similar to those set out would only be covered under BSS. Otherwise lawyers and Doctros who provide servcies in Companies would also be liable. You may intimate department before taking a stand.