Liability of service tax, Service Tax

[SHYAMAL ROYCHOWDHURY]

business support service :- One mr A ( Not Professionally qualified ) under trade name BSD & ASSOCIATES CARRIES ON BUSINESS OF KEEPING & PREPARING RECORDS , CHALLANS , REGISTERS ETC REQURED ASPER PROVISIONS OF PF & ESI ACT . HIS CLIENTS ARE SMALL PVT LTD COMPANIES, FIRMS & PROPRITORY BUSINESS . THESE BUSINESS CLIENTS OUTSORCE THE COMPLIANCE OF THE PF ACT, ESI ACT . NOW THE QUESTION IS ARE MR A LIABLE TO SERVICE TAX UNDER BUSINESS SUPPORT SERVICE & IF NOT IS THEIR ANY OTHER CLAUSE TO COVER MR A FOR SERVICE TAX. iF THE ANS IS YES , THEN WEATHER MR A IS LIABLE TO PAY SERVICE TAX ON RENT OF PROPERTY HE RECIVES WHICH IS USED BY COMMERCIAL CONCERN. TOTAL ANNUAL EDTIMATED FEES OF MR A FOR 2007- 2008 WILL BE 25 LACS . RENT RECEIPT IS RS 15000 /- P.M. LAST YEAR 2006-2007 FEES WERE RS 18LACS. MR A SHOWS FEES RECIVED "AS RECEIPTS "IN P& L ACCOUNT MR A CONTENTION IS THAT AMOUNT RECEIVED FROM CLIENTS ARE HIS BUSINESS RECEIPTS & NOT SERVICE FEES . SHALL BE OBILIZED FOR AN EALY DISCUSSION ROYCHOWDHURY

Posts / Replies

[Madhukar N Hiregange]

He is liable under BSS as the defintion includes accounting and transaction processing. Rent also would be inlcuded post 1.6.2007.