FAQs - Companies/Business Entities
SERVICE TAX - GENERAL
I am in the business of running a chain of restaurants. I intend to sell my business. Am I required to pay service tax?
Services by way of transfer of a going concern, as a whole or an independent part thereof, are exempt from service tax. Therefore, you are not require... Read More
What is the tax liability of a person carrying out intermediate production process as job work for his clients?
Any process amounting to manufacture or production of goods is in the negative list. If process does not amount to manufacture or production of goods,... Read More
Footwear Association of India is organizing a business exhibition in Germany for footwear manufacturers of India. Is Footwear association of India required to pay service tax on services to footwear manufacturers?
No. The activity is exempt from service tax.... Read More
Whether the exemption provided in the mega -exemption to services by way of construction of roads, airports, railways, transport terminals, bridges, tunnels, dams etc., is also available to the sub-contractors who provide input service to these main contractors in relation to such construction?
As per clause (1) of section 66 Freference to a service by nature or description in the Act will not include reference to a service used for... Read More
What is the tax liability on services by the intermediaries to entities those are liable to pay tax on their final output services?
Services by following intermediaries are exempt from service tax: sub-broker or an authorised person to a stock broker; authorised person to a mem... Read More
I am a Resident Welfare Association (RWA). The members contribute an amount to RWA for holding camps to provide health care services to poor men and women. Am I required to pay tax on contribution received from members?
No. You are not required to pay service tax on the contribution received as you are carrying out any activity (holding camps to provide health care se... Read More
What is the tax liability of a RWA on the charges collected from own members by way of reimbursement of charges or share of contribution for the common use of its members in a housing society or a residential complex.
Service of an unincorporated body or a non- profit entity registered under any law for the time being in force to its own members up to an amount of&n... Read More
I have taken on rent a piece of vacant land from its owner. The land will be used for providing the facility of vehicles parking on payment. What is my service tax liability?
You are not required to pay tax on providing the facility of vehicle parking to general public. However, if you are providing the facility of parking ... Read More
I have a bus with a contract permit and operating the bus on a route. The passengers embark or disembark from the bus at any place falling on the route and pay separate fares either for the whole or for the stages of journey. Am I required to pay tax?
No. However, transport of passengers in a contract carriage for the transportation of passengers, for tourism, conducted tour, charter or hire is taxa... Read More
Is giving of a bus on hire to any person liable to tax?
Giving on hire a bus to a state transport undertaking is exempt from service tax. If the bus is given on hire to a person other than a state transport... Read More
I am running a hotel having the facility of central air-conditioning. There are number of restaurants in the hotel. Am I liable to pay service tax on to serving of food or beverages in these restaurants?
Serving of food or beverages in a centrally air-conditioned premise will be taxed if its restaurant has a license to serve alcoholic beverages. Howeve... Read More
What is the significance of declared tariff?
Declared tariff is defined in the mega notification. It includes charges for all amenities provided in the unit of accommodation (given on rent for st... Read More
I am setting up a wheat flour mill. The supplier of machines is demanding service tax on erection and installation of machineries and equipments in the flour mill. Is he is right in demanding service tax?
There is no service tax liability on erection or installation of machineries or equipments for units processing agricultural produce as food stuff exc... Read More
Are repair, maintenance of airports, ports and railways liable to tax?
Yes. They are liable to service tax and the same will be available as input tax credit to railways, port or airport authority, if other conditions are... Read More
What is the service tax liability on construction of two - floor house constructed through a contractor? My contractor is demanding service tax. Is he right in doing so?
Service tax is payable on construction of a residential complex having more than one single residential unit. Single residential unit is defined in th... Read More
I am constructing a residential complex for my client. The houses are predominantly meant for self-use or the use of the employees. Am I required to pay service tax?
If your client is other than the Government, a local authority or a governmental authority, you are required to pay service tax. However, exemption is... Read More
I am a contractor in number of projects for constructing roads. What is my tax liability on construction of roads under different types of projects?
Construction of roads for use by general public is exempt from service tax. Construction of roads which are not for general public use e.g. constructi... Read More
What is the significance of words predominantly for use other than for commerce, industry, or any other business or profession?
The exemption is available for a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any oth... Read More
Which are the construction services exempted when provided to the Government, a local authority or a governmental authority?
Exemption is available to the services by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, re... Read More
What is the tax liability of advocates, or arbitral tribunal in respect of services provided by them?
Advocates can provide services either as individuals or as firms. Legal services provided by advocates or partnership firms of advocates are exempt fr... Read More
Are all services provided to a governmental authority exempt from service tax?
No. A governmental authority enjoys same benefits as the Government or a local authority in respect of receipt of services. The following services whe... Read More
Are services provided to all international organizations exempt from service tax?
No. Services to only specified international organisations are exempt. 'Specified international organisation' has been defined in the notification and... Read More