The "business auxiliary services" newly added in the net of service tax is a very vague

Indian Service Tax

Clarifications

Point No. 2

The "business auxiliary services" newly added in the net of service tax is a very vague and wide term. Does it encompasses services like accounting, cheque collection services, debtor realisation/collection services, commission on sale, filing of different returns with statutory authorities or even typing services etc.?

Reply

The 'Business auxiliary services' newly added in the net of service tax in this Finance Bill encompasses services like accounting, cheque collection services, debtor realisation/collection services, services as a commissioning agent. For the sake of convenience the relevant part of nature of service (Business auxiliary services) is reproduced here. below:

"Any incidental or auxiliary support services such as billing, collection or recovery of cheques, accounts and remittance, evaluation of prospective customers and public relation services and includes services as a commission agent but does not include any information technology service". Thus it appears that the scope of this service is very vast and almost covers every service rendered to any business organisation.

(Authority: RAC on 27.3.2003, Mumbai-II Commissionerate)