The second issue involved in the appeal is levy of service tax on tickets sold before 1.5.2006 and used after 1st May 2006. The appellant’s contention is that the appellant sold the tickets to the passenger prior to 1.5.2006 and at that time there was no provision under the law of charging service tax Therefore, the service tax cannot be demanded from them of tickets sold prior to 1.5.2006. On going through the definition of the taxable service under this category we find that Section 65(105) indicates that taxable service would mean the services provided by the service provider to the service recipient as well as would also mean the services to be provided at a later date. The appellant being a service provider is required to make payment of service tax on the taxable services which were required to be provided on and after 1.5.2006. The levy of Service Tax has no connection with the receipt of payment and the service tax is required to be paid when the service is provided.
Even after the deletion of expression activities related to business from the definition of input services, the credit of Service tax paid on the sales promotion activities and on the services of sales of dutiable goods on commission basis would be admissible as credit. As such, it is the contention of the learned advocate that even after the activities related to business, stand deleted from the definition of inputs credit as per the Board’s Circular, the Service tax paid on commission on agent services would be available.
The assessee received ‘turnover charges’, stamp duty, BSE charges, SEBI fees and Demat charges contending that the same was payable to different authorities and claimed that the same is not taxable. But the revenue taxed the same on the ground that such receipt by stock broker was liable to tax. The revenue failed to bring out whether the turnover charges and other charges in dispute in these appeals received by assessee were commission or brokerage.
The Appellants are dealers of Ford Motor vehicles and they had entered into agreements with different banks and also with Non-Banking Financial Companies to market car-loan to potential customers. For loan taken by the customers, these appellants got commission from the banks and NBFCs. The issue in this appeal is whether service tax is to be paid on such commission categorizing the activity of the Appellants as “business auxiliary service”. Definition of BAS services had been substituted wef 10.09.2004 and in substituted definition services of commission agent were expressly included and since then only assessee started paying service tax. Assessee also contended that services provided by them were taxable under Business Support Services and not under Business Auxiliary Services
The appellant/assessee is a distributor of mutual fund units and receives commission from mutual fund companies or asset management companies. The commission received by the appellants from the said companies stand taxed by the authorities below on the ground that they have provided Business auxiliary services to the mutual fund company. The appellant/assessee submits that it is recipient of such services, which is liable to pay service tax in terms of rule2(1)(d)(vi) of Service Tax Rules, 1994.
In respect of exports made from 14-5-2009 till 6-7-2009, the grant of the refund would be governed by the conditions under the previous Notification No. 41/2007, dated 6-10-2007. For the remaining period, refund would be governed by the new Notification No. 17/2009, dated 7-7-2009. The conditions prescribed in the two notifications are somewhat different. The precedent notification in force till 6-7-2009 had a condition that the storage and warehouse is exclusively used for the purpose of storage or warehouse of the export goods. However, there is no such condition in the successor notification applicable from 7-7-2009.
Before the date when CENVAT Credit Rules, 2004 had come into effect i.e.10.09.2004, CENVAT credit was available under Cenvat Credit Rules, 2002 Service Tax Credit Rules, 2002 . Service Tax Credit Rules, 2002 allowed to take cenvat credit of input service falls in the same category of taxable service as that of output service up to 13.05.2003. However wef 14.05.2003 these rules had been amended and cenvat credit of any input service could be taken.
In this case, the focus of the appellant’s activity in organizing short term courses on the subject relating to the Forestry, Water Resources Management, Environment, for the officers of Indian Forest Service and other organizations i.e. improving the skills and knowledge level of the persons of various organizations attending the courses and as such, there is no activity of the appellant, which can be called rendering advice, directly or indirectly, in connection with management of any organization.
Explanation in Rule 6(1) does not make any provision as to which rate of tax will apply in situation like the one at hand (whether that on date of receipt of value or that on date of providing service). This explanation says that the service provider need to pay tax only on that portion of value for which service tax has been provided. In the instant case the Appellant paid tax on the full value received.
The appellant/assessee provided services of Authorized Service Station and Business Auxiliary Services. They had acted as agent for promoting vehicle loans for which the Bank paid them commission. Out of the commission paid by the Bank, they were in fact paying some amount to the loan seekers as an incentive for taking the loan through them.
