in which head service should be classified

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..... in which head service should be classified
Query (Issue) Started By: - varun arora Dated:- 11-2-2016 Last Reply Date:- 12-2-2016 Service Tax
Got 4 Replies
Service Tax
Dear Experts, If a service provider is providing the facility to Hostel students like mess facililty, renting to immovable property and furniture facility then in which head this service should be classifiable i mean tw .....

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..... o or more service should we registered ourselves. Thanks in advance..!! Reply By KASTURI SETHI: The Reply: Sh.Varun Arora Ji, Answer to your question is Bundled Services. Reply By Ganeshan Kalyani: The Reply: I agree with Sri Kasturi Sir. The answer to this query is in issue Id 109858 by Sri Rajagopalan Sir. Thanks. Reply By vijay kumar: The Reply: Please refer to Section 66F of the Finance .....

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..... Act, 1994 which reads as follows: "66F (2) Where a service is capable of differential treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. (3) Subject to the provisions of sub-section (2), the taxability of a bundled service shall be determined in the following manner, namely:-- (a) if various elements of suc .....

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..... h service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which gives such bundle its essential character;" In your case, you are providing the Hostel accommodation along with mess facility and furniture facility. It's a case of naturally bundled services. The service which gives it the essential character is the hostel acc .....

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..... ommodation service, other services being incidental in nature (mess and furniture facility could be optional too). You may classify your service accordingly. Reply By KASTURI SETHI: The Reply: Sh.Vijay Kumar Ji, Kindly go through my views in Issue ID 109858. I am of the view that the words, "Complete Package" includes all the services provided by the querist but I am not sure about i .....

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..... t. Only querist knows about this aspect. In case "Complete Package" includes all services, then it should be one Bundled Services" and the assessee would be eligible for abatement. I also want to know your views. Thanks a lot.
Discussion Forum - Knowledge Sharing .....

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