insurance including insurance auxiliary service relating to life insurance
1. The section referred to hereinafter are
the sections or clauses of the Finance Act, 1994 as amended by the Finance Act,
2002. Reference to sub-clause or clause means clause or sub-clause of section 65
of the Finance Act, 1994 as amended by the Finance Act, 2002.
defines “life insurance business” as to have meaning assigned to it in
clause (11) of section 2 of the Insurance Act, 1938. The taxable service has
been defined in clause 90 (zx) of section 65 as “any service provided, to a
policy holder, by a insurer carrying on life insurance business, in relation to
life insurance business”.
Definition of “life
insurance business” as per the aforesaid section of the Insurance Act, 1938 is
“Life insurance business” means the business of effecting contracts of insurance upon human life, including and contract whereby the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, and any contract which is subject to payment of premiums for a term dependent on human life and shall be deemed to include-
(a) the granting of disability and double or triple indemnity accident benefit, if so provided in the contract of insurance,
(b) the granting of annuities upon human life, and
the granting of superannuation allowances and annuity payable out
of any fund applicable solely to the relief and maintenance of person engaged in
any particular profession, trade or employment or of the dependent of such
It has been decided to exempt the service tax leviable on life insurance
service (refer to notification No. 9/2002 ST dated 1.8.2002 ). As a result,
service tax is not payable on the service provided by an insurer to a policy
holder in relation to life insurance business.
Insurance auxiliary services relating to general insurance business were
brought into tax net last year with effect from 16.7.2001. This levy has now
been extended to cover the insurance auxiliary service relating to life
Services covered in this category are the services provided by the
insurance agents to the insurer/policy holder, by actuary to the insurer or by
an intermediary or insurance intermediary to insurer/policy holders. Insurance
agents provide service to insurance company in relation to marketing of
insurance policies. They also provide service to the policy holder by providing
information/advice on the types of insurance policies, processing of
documentation, remitting of insurance premium, etc. Actuarial services are
provided by the actuaries to the insurance companies. They cover diverse fields
such as calculating insurance risks and premia, insurance claims adjustment
services such as services of investigating claims, determining the amount of
loss or damages covered by the insurance policies and negotiating settlements,
services of examining claims which have been investigated and authorisation of
payments and damage assessment services, administration of insurance including
salvage administration and insurance consultancy services.
The service providers in this category includes insurance agents,
insurance surveyors and loss adjusters, actuaries insurance consultants and
insurance brokers. In the case
of insurance surveyors and loss adjusters, actuaries and insurance consultants,
the service is provided mainly to the insurance companies (insurer) while in the
case of insurance agents, the service is provided to both the insurer and the
policy holder. Service tax is liable
to be paid by the insurance auxiliary service provider except in case of
insurance agents. Insurance agents normally do not charge the policy holder.
However, the insurance company pays the agent a commission (usually as a
percentage of the insurance premium) on a periodic basis.
As is the case in respect of general insurance business, it has been
provided in the Service Tax Rules that in the case of an insurance agent for
life insurance, the person liable to pay service tax will be the concerned
insurance company who has appointed the agent. Notification no.12 /2002-ST
6. The service tax is applicable to services provided on or after 16.8.2002 and any payment made for the services provided prior to this date will not liable to tax even though payment is made on or after the 16.8.2002.
1. The section referred to hereinafter are
the sections or clauses of the Finance Act, 1994 as amended by the Finance Act,
2002. Reference to sub-clause or clause means clause or sub-clause of section 65
of the Finance Act, 1994 as amended by the Finance Act, 2002.
As per clause (21), the term “cargo
handling service” means loading, unloading, packing or unpacking of cargo and
includes cargo handling services provided for freight in special containers or
for non-containerised freight, services provided by a container freight terminal
or any other freight terminal, for all modes of transport, and any other service
incidental to freight, but does not include handling of export cargo or
passenger baggage or mere transportation of cargo. The taxable service, as per
sub-clause (zr) of clause (90), is any service provided, to
any person, by a cargo handling agency in relation to cargo handling
The services which are liable to tax under this category are the
services provided by cargo handling agencies who undertake the activity of
packing, unpacking, loading and unloading of goods meant to be transported by
any means of transportation namely truck, rail, ship or aircraft. Well known
examples of cargo handling service are services provided in relation to cargo
handling by the Container Corporation of
The services provided in relation to export cargo and passenger baggage
are excluded from tax net.
Mere transportation of goods is not covered in the category of cargo
handling and is therefore not liable to service tax.
Cargo handling service
provided in relation to storage of agricultural produce (scope of the term
“agricultural produce” is given under the storage and warehousing service)
or for goods meant to be stored in cold storage have been exempted from the levy
of service tax. (See notification No. 10/2002-ST).
A point has been raised as to what would be the value of service tax in a
case where transport and cargo handling service is provided in a composite
manner. The measure of tax is the gross amount charged by the cargo handling
agency from the customer. Therefore, if lumpsum amount is charged for both
transportation and cargo handling, the tax will be payable on the entire amount.
On the other hand, if the bill indicates the amount charged for cargo handling
and transportation separately on actuals basis (verifiable by documentary
evidence), then the tax would be leviable only on the cargo handling charges.
Cargo handling services are provided in the port also. Whether such
service will be covered in the category of port services or cargo handling
service. In this context it may be mentioned that port services cover any
service provided in relation to goods or vessels by a port or a person
authorized by the port. This includes the cargo handling service provided within
the port premises. Therefore to this extent there may be an overlap in cargo
handling service and the port service. However since port services covers all
the service in relation to goods and vessels and therefore more specific to
port, the service provided in a port in relation to handling of good would be
appropriately covered under port service and no separate levy will be attracted
under the category of cargo handling agency service. Similar would be the case
in respect of service provided for storage of goods in the port premises.
All goods meant for export
are excluded from the scope of this levy. There may be cases where goods may be
transhipped at a place other than the place of packing before reaching a place
from where it is exported. For example goods are packed say at
Passenger baggage has been
excluded from the levy of service tax. In
this regard a point has been raised as to whether unaccompanied baggage of a
passenger attracts service tax under the category of passenger baggage.
It is clarified that unaccompanied baggage of a passenger will not be
leviable to service tax.
A point has been raised by Airports Authority of India (AAI) as to
whether service tax will be leviable in respect of handling of transshipment of
export cargo from one international carrier to another international carrier or
from a domestic carrier to an international
carrier. It is clarified that so long as the cargo is for export, no
service tax on handling of such cargo is leviable. For domestic cargo service
tax will be applicable.
Another point raised by them is that they undertake transshipment of
import cargo from international to domestic carrier which will be ultimately
cleared at the final domestic destination. It is stated that the service
rendered by them should be held as exempted and it merely relates to
transportation of goods. This is not factually correct. Under the notification
No. Cargo/13519/Pt. I dated
It has been pointed out that Container Freight Stations that they do not
have any direct contact with the importer and they only provide facility to the
Customs House Agents (CHA) to handle the container and import cargo for which
they have a contract on a mutually agreed rate. It is the CHA who claims all the
charges from the importer including the charges made by the CFS on CHA and remit
to the CFS. Since services of a CHA is already covered under the tax net, the
CFS service providers should be exempt from tax when the billing is done on CHAs;
otherwise there will be double taxation. The above contention is not correct. In
the case of CHAs, the service tax is levied only on the agency or agency and
attendance charges and not on the reimbursible expenses (on actuals basis) such
as port fees, statutory levies, landing and container charges, dock fees,
examination charges, terminal handling charges, etc. The CHA does not pay
service tax on the handling charges charged by the CFS. Thus there is no double
taxation. Further, as per the law, whatever charges, the cargo handling agency
charges from any person (including the CHA) is liable to service tax.
Another point raised relates to cases where the CFS offers a total
package rate, which includes transportation and handling in respect of imported
laden containers from Port to CFS. The question is if the cost of transportation
is shown separately in the bill raised, will it be excluded from the levy of
service tax. If the cost of transportation is claimed on actuals basis, then it
will not be includible in the taxable value of cargo handling services.
A clarification has been sought as to whether service tax is payable on
abandoned cargo which are auctioned by the CFS as no service is rendered to any
person. In the case of auctioned goods, the proceeds of the auction goes first
to the cost of auction, then towards customs duties and then to the custodian of
the goods. It is clarified that no cargo handling service can be said to have
been rendered in such cases, therefore service tax is not leviable.
Some of the cargo handling agencies may also act as marketing agents for
individual airlines for which they get a commission, which seems to range from
5% to 15% of the freight. The question is whether service tax is payable on
this. Marketing or canvassing for cargo for airlines does not come within the
ambit of cargo handling services. Hence no service tax is payable under the
category of cargo handling service.
CFSs also sometimes undertake storing/washing/repairing and handling of
empty containers for the shipping lines for which they charge the shipping
lines. Empty containers can not be
treated as cargo. Therefore, the activities mentioned above do not come within
the purview of cargo handling services.
15. Another doubt raised in relation to cargo handling services is that whether individuals undertaking the activity of loading or unloading of cargo would be leviable to service tax. For example, if someone hires labour/labourer for loading or unloading of goods in their individual capacity, whether he would be liable to service tax as a cargo handling agency. It is clarified that such activities will not come under the purview of service tax as a cargo handling agency.
and warehousing services:
section referred to hereinafter are the sections or clauses of the Finance Act,
1994 as amended by the Finance Act, 2002. Reference to sub-clause or clause
means clause or sub-clause of section 65 of the Finance Act, 1994 as amended by
the Finance Act, 2002.
As per clause (87), “storage
and warehousing ” includes storage and warehousing services for goods
including liquids and gases but does not include any service provided for
storage of agricultural produce or any service provided by a cold storage. As
per sub-clause (zza) of clause (90), the taxable service is any service
provided, to any person, by a storage or warehouse keeper in relation to storage
and warehousing of goods.
Storage and warehousing service for all kind of goods are provided by
public warehouses, private warehouses, by agencies such as the Central Ware
Housing Corporation, Air Port Authorities, Railways, Inland Container Depots,
Container Freight Stations, storage godown and tankers operated by private
individuals etc. The storage and warehousing service provider normally make
arrangement for space to keep the goods, loading, unloading and
stacking of goods in the storage area, keeps inventory of goods, makes
security arrangements and provide insurance cover etc.
Service provided in ports has already been covered under the category of
Service provided in relation to agriculture produce and service provided
by cold storage is outside the ambit of the levy. Doubts have been raised about
the scope of term “agricultural produce”. In order to clarify the scope of
this term beyond doubts, an order has been issued under the power vested under
section 95 of the Finance Act (see order No. 1/2002-ST dated 1.8.2002).
As clarified in the order, the term agricultural produce would cover all
cereals, pulses, fruits, nuts and vegetables, spices, copra,
sugar cane, jaggery, raw
vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured
tobacco, betel leaves, tendu leaves, and similar products. However, manufactured
products such as sugar, edible oils, processed food etc. will not come under the
purview of the term ‘agricultural produce’.
It has been stated that in some case a storage owner only rents the
storage premises. He does not provide any service such as loading/unloading,
stacking, security etc. A point has been raised as to whether service tax would
be leviable in such cases. It is clarified that mere renting of space can not be
said to be in the nature of service provided for storage or warehousing of
goods. Essential test is whether the storage keeper provides for security of
goods, stacking, loading/ unloading of goods in the storage area.
A point has been raised by the Airport Authority
of India (AAI) that they have established cold storage for perishable goods at
cargo complexes at various places as part of cargo warehousing activities and
whether the exemption provided in respect of cold storage would be applicable to
these cold storages also. It is clarified that service provided by a cold
storage has been specifically excluded from the tax net. Therefore the service
of cold storage provided by AAI will also be exempt.
7. Another point raised is that AAI are collecting terminal charges which is only a facilitation charge for providing a terminal and as such does not involve any service. As per the notification No. Cargo/ 13519/Pt.I dated 4.6.1993 of the International Airport Authority of India “ terminal charges” means charges payable to or collected by the Authority or Cargo Handling Agency for use of facilities for processing of cargo. As per this notification “storage and processing charges” specifically include terminal charges also. Therefore service tax is leviable on such charges.
A doubt has been raised whether cloak room services for passenger’s
luggage in railway stations, bus stations etc. would come within the purview of
storage and warehousing services. It is clarified that these are
passenger terminal services incidental to rail transport or road
transport, they do not come within
the purview of storage and warehousing services.
The Central Warehousing Corporation has stated that they have more than
450 warehouses which are controlled by 17 regional offices. The billing is done
both at the warehouse level and at the Regional Office level. However accounting
for the warehousing charges as well as the cargo handling services is done only
at the Regional Office level. Therefore, they have requested that only their
Regional Offices should be registered for service tax purposes. The Service Tax
rules empower the Commissioner of Central Excise to register only those offices
which have centralised accounting facility. The Commissioners may exercise this
power in such cases and register only the regional offices of CWC.
10. Another point made by the CWC is that they engage handling and transport contractors (H&T contractors) to provide handling and transport services who would be charging them service tax for cargo handling services. CWC add supervision charges and raises the bill to the customers. For warehousing they raise a separate bill. The question is whether CWC is liable to pay service tax on cargo handling services and if so, whether they can take credit of the tax paid on cargo handling services by the H&T contractor. Similar situations may exist in respect of other storage and warehouse keepers. It is clarified that if the storage and warehouse keeper undertakes cargo handling services also and raises its own bill to the customer for such service, then he would be liable to pay service tax under the category of cargo handling services also. However, he would be eligible to take credit of service tax paid on cargo handling services rendered by the H&T contractors and adjust the same against his service tax liability on cargo handling services provided he raises a separate bill for the same to his client. In other words, he can not adjust the credit against storage and warehousing service charges.
clause (34), “event management” means any service provided in relation to
planning, promotion, organising or presentation of any arts, entertainment,
business, sports or any other event and includes any consultation provided in
this regard. Vide clause (90)(zu), taxable service means any service provided to
a client, by an event manager in relation to event management. Event manager has
been defined in clause (35) as any person who is engaged in providing any
service in relation to event management in any manner.
An event manager is hired to execute an event such as product launch of
any corporate, promotional activities, concerts/ rock show, official meets,
award functions, beauty pageants, entertainment events, exhibitions, private
functions, and sports events etc. Event manager uses his expertise and ideas to
manage an event. Event manager is supposed to manage a venue, sets including
decoration of sets, mandap, chair, table, barricades, sound, light video,
electricals, security, communication, invitations to the event/ sale of tickets
and publicity of the event. He has also to manage the stage show, artist,
musician, choreographers and other miscellaneous items for holding of event. All
services provided by the event manager are liable to service tax.
This also covers any consultation provided for organizing an event.
For managing an event, the
event manager hires the services of photographer, videographer, sound recording
studio, advertising agency, mandap keeper and security agency. Service tax is
already leviable on the amount paid to these agencies by the event manager. A
point has been raised as to whether the amount paid by the event manager to such
agencies will be includible in the value on which he is liable to pay service
tax. It is clarified that the taxable service is any service provided by the
event manager in relation to management of event. Therefore the gross amount
charged by the event manager from the client for organizing the event is liable
to be included in the value of the taxable service for the purpose of
calculation of service tax.
5. A point has been raised as to whether in the case where event is organized/managed in-house but certain contractors are appointed say for stage/ mandap preparation, for lighting/ sound system, for advertising the event etc and revenue is generated by renting out the exhibition space and sale of ticket, whether service tax will be leviable on the amount charged by the contractors or on the amount generated by sale of space or tickets etc. It is clarified that service tax is not on the event but on the service provided for managing an event. Therefore in a case where the event is organized/managed by the sponsor himself, no service tax is payable as “event management”. However, the contractors who provide service as mandap keeper, videographer, security agency etc are no doubt liable to pay service tax on their “ taxable service”. It is clarified that service tax under the category of event management is not leviable on the sale proceeds of tickets or revenue generated from the sale of space.
Travel agent :
As per clause (72), “rail travel agent” means any person engaged in
providing any service connected with booking of passage for travel by rail. The
taxable service is any service provided to a customer, by a rail travel agent in
relation to booking of passage for travel by rail.
As per section 67, the value of taxable service includes the commission
or any amount received by the rail travel agent from the Railways or the
customer but does not include the rail fare collected by the rail travel agent.
A point has been raised as to whether the service tax is leviable on rail
travel agent not registered with railways. It is clarified that any person
whether registered with the Railways or not engaged in providing any service
connected with booking of passage for travel by rail is liable to service tax.
5. Rail travel agent charges the customer, generally on per ticket/berth basis. Further, cancellation of tickets is also quite frequent and rail travel agent also charges the customer for cancellation of tickets. Service tax is payable in both the cases.
club & fitness centers service:
As per clause (42),
“health and fitness service” means physical well being service such as ,
sauna and steam bath, turkish bath, solarium,
spas, reducing or slimming salons,
gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any
other like service. As per clause (90)(zw), the taxable service is any service
provided to any person, by a health club and fitness centre in relation to
health and fitness service. “Health club and fitness centre” means any
establishment including a hotel or a resort providing health and fitness
and fitness services are provided by clubs, fitness centers, health saloons,
hotels, gymnasium and massage centers. The services which fall under this
category mght be for weight reduction and slimming, physical fitness exercise,
gyms, aerobics, yoga, meditation, reiki , sauna and steam bath, Turkish bath,
sun bath and massage for general
well being. However therapeutic
massage does not come in the ambit of taxable service. Therapeutic massage
basically means a massage provided by qualified professionals under medical
supervision for curing diseases such as arthritis, chronic low back pain and
sciatica etc. Ayurvedic massages, acupressure
therapy, etc. given by qualified
professionals under medical supervision for curing diseases/disorders will come
under the category of therapeutic massages. If the massage is performed without
any medical supervision or advice but for the general physical well being of a
person, such massages do not come under the purview of therapeutic massages and
they would be liable to service tax.
A point has been raised as to what would be the value of taxable service
in case where clubs and fitness centers charge a monthly/periodic amount as
membership fee and only members are allowed to avail their services. It is
clarified that membership fee charged by the club is in lieu of service provided
and therefore in such cases service tax would be leviable on periodic/monthly
relates to service tax on membership fee already collected. It is clarified that
no service tax will be payable on membership fee already collected prior to the
date on which the new service tax has come into force.
Certain recognized institutes impart diploma courses in yoga. A point has
been raised as to whether service tax is leviable on such institutes. It is
clarified that such institutes and research center do not fall in the category
of health club & fitness center and accordingly would not be liable to
per clause (16), “beauty treatment” includes face and beauty treatment,
cosmetic treatment, manicure, pedicure or counseling services on beauty, face
care or make-up and as per clause (17), “beauty parlour” means
any establishment providing beauty treatment services. The taxable service, as
per sub-clause (zq) of clause (90) means any service provided, to a customer, by
a beauty parlour in relation to beauty treatment.
service covers the beauty treatments such as facial, manicure, pedicure and
other make ups provided by beauty parlours.
However, it does not include hair cutting and shaving.
Further, it does not include plastic surgery/ cosmetics surgery done to
improve the appearance, as they are not the kind of service provided by the
beauty parlours. These are more
appropriately classifiable as medical services.
The service provided in relation to hair dyeing has been exempted vide
notification No. 11/2002-ST dated 1.8.2002.
For providing beauty services, parlours use materials such as cosmetics
and toilet preparations. A point has been raised as to whether the cost of such
materials will be included in the value of taxable service. It is clarified that
these materials are essential for providing the service and they are not sold as
such but used for treatment such as facials etc. Therefore, they are integral to
the service provided. Hence service tax will be charged on the gross amount and
no abatement is admissible on account of the value of material consumed in
providing the service.
5. Often beauty parlours also sell cosmetics in retail. Quite obviously, no service tax is payable on mere sale of cosmetics or any other material.
As per clause (37) “fashion
designing” includes any activity relating to conceptualising, outlining,
creating the designs and preparing patterns for costumes, apparels, garments,
clothing accessories, jewellery or any other articles intended to be worn by
human beings and any other service incidental thereto and as per clause (38)
“fashion designer” means any person engaged in providing service in relation
to fashion designing. As per sub-clause (zv) of clause (90), taxable service is
any service provided to any person, by a fashion designer in relation to fashion
designer conceptualise and create designs/patterns applying his sense of
aesthetic, keen sense of colour, visual imagination, knowledge of market trend
and as per requirement of the client. Accordingly fashion designer may be
involved in designing of any goods which are intended to be worn by human being
and where aesthetic/looks/fashion is a criterion for wearing it. Fashion
designers work include selection of material (for example type of cloth, its
colour, design, quantity etc), preparing design as per the trend or as per his
visual imagination, preparation of pattern incorporating
the requirement of the client. Fashion designer also keeps in mind the occasion,
season and time etc. when his designed article is intended to be worn.
A point has been raised as to whether tailors and jewellers will be
covered under the service tax. Taxable service in this case is designing of
goods intended to be worn by human being. A tailor is involved only in stitching
of clothes. As such no designing
activity is involved. Hence tailor will not be covered under the tax net.
Similarly jeweller essentially makes jewelry and sells it. Therefore, no
designing is involved. However a jeweller may avail services of a designer to
design jewelry. Service provided by
designer to jeweller would be covered under the tax net in the category of
Some times the fashion designer not only provide designing service but
also make the garments or the intended articles as per the requirement. A point
has been raised as to what shall be the value of taxable service in such cases
as the service provider charges in composite manner for designing as well as
making of garments. It is clarified that service tax levy covers only the
fashion designing service and as such making of garments is outside the purview
of the levy. Therefore service tax would be leviable only on the designing
charges provided fashion designer show the designing and making charges
separately in the bill. However it is also clarified that that if a fashion
designers designs article for himself and makes these articles say garments and
sells them, in such a case designing service is provided to oneself by the
designer and therefore not liable to service tax.
6. At times fashion designer provides stitching service along with designing of cloth as per the requirement of client. In such case the fashion designer is liable to pay service tax only on designing service rendered by him provided designing charges are shown separately in the bill. However if designing charges and stitching charges are shown in consolidated manner, service tax will be leviable on entire amount.
per clause (20), “cable service” shall have the meaning assigned to it in
clause (b) of section 2 of the Cable Television Networks (Regulation) Act, 1995.
As per clause (19) “cable operator” shall have the meaning assigned to it in
clause (a) of section 2 of the Cable Television Networks (Regulation) Act, 1995.
The taxable service, as per sub-clause (zs) of clause (90) is any service
provided to a customer, by a cable operator in relation to cable services.
per the Cable Television Network (Regulation) Act, 1995, the definitions of
cable service and cable operator are as follows:
"cable operator" means any person who provides, cable service through a cable television network or otherwise controls or is responsible for the management and operation of a cable television network;
"cable service" means the transmission by cables of programmes including re-transmission by cables of any broadcast tele-vision signals;
The taxable service in this case is the cable services provided by the
cable operators. The programme broadcast by television channel are received
either by Multi System Operators (MSO) or directly by cable operators in the
form of signals. Where MSO receives the signals, they first retransmit signals
to the cable operator who in turn retransmits the same to the viewers through
the cable network provided by the cable operator.
Service tax is liable to be paid by the cable operator providing service
to ultimate subscriber of cable services.
In some States, cable operators are also liable to pay entertainment tax.
In such cases, a cable operator charges from his customer an amount inclusive of
entertainment tax. A point has been raised as to whether the amount paid as
entertainment tax is liable to be included in the value of taxable service. It
is clarified that the entertainment tax collected and paid to the Government
will not be includible in the value of taxable service, provided the cable
operator clearly indicates the entertainment tax element in his bill to the
As per clause (31), “dry
cleaning” includes dry cleaning of apparels, garments or other textile, fur or
leather articles. As per clause (32) “dry cleaner” means any commercial
concern providing service in relation to dry cleaning. The taxable service, as
per clause (90)(zt) is any service provided
to a customer, by a dry cleaner in relation to dry cleaning.
Dry cleaner normally performs following process as on cloths during the
process of dry cleaning:
Tagging and inspection-
Dry cleaner inspects the cloths and tags them with an identification label.
Pre –treatment- a stain
remover is applied to remove the stains. Use of stain remover depends on the
nature of stains such as stains of grease, oil, ink, colours etc. Fabric/cloth
is then rinsed and dried.
Dry cleaning- a dry
cleaning machine is a motor driven washer/extractor/dryer and it holds clothes
in a rotating, perforated stainless-steel basket. Cloths are washed with a
solvent. There may be various types of solvents used for dry cleaning such as
perchloethylene (perc), carbon tetrachloride, trichloethylene and petrol etc. As
the clothes rotate in the perforated basket, there is a constant flow of clean
solvent from the pump and filter system. After cleaning, the clothes are drained
to expel the solvent and ten goes into a dry cycle by circulating warm air.
Post spotting- If there
is any spot/stain left after the dry cleaning, it is removed using water or any
other appropriate chemical.
A point has been raised as to
whether service tax is leviable on wet cleaning also. Wet cleaning is a process
of cleaning garments in water and water soluble detergent. It is clarified that
service tax is leviable only on dry cleaning. Accordingly service tax is not
leviable on wet cleaning/washing provided the dry cleaner clearly mentions it in
the bill. If details are not mentioned in the bill, it would normally be
understood that clothes have been dry cleaned and in such situation service tax
is liable to be paid.
point has been raised whether service tax is payable on the job of dyeing,
darning etc. It is clarified
that since these activities are not dry cleaning, these service are not taxable
provided it is clearly indicated in the bill.
Application for registration under section 69 Of the Finance Act, 1994 (32 of 1994)
Name of the assessee
Address of the assessee
Address of the premises to be registered
Category of the service
Fax/telex and phone number
Form of organization (individual /company / partnership, etc.)
Additional information required in the case of stock broker:
(a) Name of the member, with code No.
(b) Name of stock exchange registered with
(c)Date of admission of membership
(d) Whether member of more than one stock exchange? If so, please give name of the stock exchange with code number
(e) Registration number allotted by Securities and Exchange Board of India (copy of certificate of registration may be enclosed or a copy of application for registration with SEBI may be enclosed)
I/We……………………..agree to abide by all the provisions of Service tax Rules, 1994, and any order issued thereunder.
I/We……………………..declare to the best of my/our knowledge and belief that the information furnished herein is true and complete.
Date: Signature of assessee or his