MAILING LIST COMPILATION AND MAILING
Date of Introduction: 16.06.2005 vide Notification NO.15/2005 dated
07.06.2005
Definitions:
“mailing list compilation and mailing” means any service in relation to —
(i) compiling and providing list of name, address and any other information from
any source; or
(ii) sending document, information, goods or any other material in a packet, by
whatever name called, by addressing, stuffing, sealing, metering or mailing,for,
or on behalf of, the client; (section 65(63a))
“taxable service” means any service provided or to be provided to any person, by
any other person, in relation to mailing list compilation and mailing; (section
65(105)(zzzg))
Value of Taxable Service:
The value of taxable service shall be the gross amount charged by the service
provider for providing such service and the money value of any other
consideration ( if any) received for providing such service. The value of
taxable service shall be determined as per the provisions made under section 67
of the Finance Act, read with Service Tax (Determination of Value ) Rules, 2006
Who is responsible to pay Service Tax:
The service provider is responsible to pay service tax. However, in cases, where
the provider of taxable service is located outside India and the recipient of
service is located in India, the recipient of service is responsible for payment
of service tax. The responsibility to pay service tax under such situations is
determined by the provisions made under section 66A of the Finance Act, 1994,
read with Taxation of Services (Provided from outside India and received in
India) Rules, 2006
Scope of Service:
Any service provided or to be provided to any person, by any other person, in
relation to mailing list compilation and mailing is taxable under sub-clause (zzzg)
of section 65(105) of the Finance Act, 1994. “Mailing list compilation and
mailing” has been defined under clause (63a) of section 65 of the Finance Act,
1994.
Business establishments such as banks, insurance companies, companies listed on
stock exchanges, real estate agents and other similar commercial entities engage
the services of persons who compile and provide lists of names, addresses and
other information from telephone directories, internet or any other source of
information for the benefit of the business. Some agencies also provide services
of sending documents, materials, information or any other goods by addressing,
stuffing, sealing, metering or mailing the envelope or packet for or on behalf
of the client. Such services are taxable under this category of service. Mail
order business companies may engage the services of mailing companies to
despatch goods to customers. Such mailing companies are also covered under this
service.
(Ref: Board’s Circular No. F.No.B1/ 6 /2005-TRU dated 27.07.2005)
General Exemptions:
|
Sr.No. |
Notification No. |
Nature of exemption |
|
1 |
16/2002 |
Services provided to United nations or any International Organisation |
|
2 |
12/2003 |
Exemption to value of goods and material sold during the course of providing taxable service, subject to conditions laid down in the notification. |
|
3 |
4/2004 |
Service provided to a developer of Special Economic Zone or Unit located in SEZ |
|
4 |
6/2005 |
Exemption from service tax for taxable services upto gross value of Rs. 4 lakhs, in case of service providers whose gross turnover for the preceding financial year was less than Rs. 4 lakhs ( w.e.f 01.04.2005) |
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