Introducing Customers to Financial Institutes for Commission is BAS

Preet Financial Services Pvt. Ltd. Vs C.S.T.-Service Tax (CESTAT Delhi) Business model of the appellant was such that they used to get commission from financial institutes for introducing customers. The said financial institutes used to pay commission in a fixed percentage on the loan amount disbursed to the end customer. After this commission, the appellant used to pass on substantial portion thereof to end consumer. When these facts are applied to the definition of Business Auxiliary Services (BAS) as under Section 65 sub-section 19 of Finance Act incorporated vide Notification No. 7/2003-Se...