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Service tax on dietitian and nutrition for various branches

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 February 2016 My One Client has been opened a Office as Diet Expert. Now he has registered his own brand and is being going to open various branches in three cities on Profit sharing with land owners in that cities. He will pay salary to appointed dietitian at those offices. Now the question is that he required to got register in Service Tax Department. He is going to bill to his client on One server basis.

06 February 2016 He is required to be registered in service tax when his total receipts for the year exceeds 9 lacs and pay service tax when it exceeds 10 lacs and from next year pay service tax on all receipts.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 February 2016 Respected Seetharaman Ji, Under which taxable service, he has to be get registration ? because of he is not promoting any other's Brand. He is Promoting his own brand with various branches. He will pay profit sharing ratio because of he will not pay any type of rent,Electricity or Water Charges etc. He will pay salary to Dietitian sitting there. And moreover He will give only prescription as Diet Expert. And till now there is no Service tax on any Dietitian and Nutrition for prescription. So please clear it why he will get registration and under which taxable service ?




06 February 2016 He is promoting his own brand. No service tax payable on salary to dietitian. Service tax applicable on payment made towards profit sharing to branches but only the branches has to register and pay service tax on profit sharing received. This service will be covered under Business Auxiliary service.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 February 2016 Thanks little bit clear. But Suppose A is brand Owner and office at his own city running one office and B is branch holder in another city and C is branch Holder in another city. A has all rights for issuing all type of services billing means B & C will go for portal login and they will issue bills on the behalf of A. It is Clear that B & C will get registration in service tax at their own name under Business Auxiliary Services.
Now Profit Sharing means suppose B has earned Rs. 100 on the behalf of A. The receipts amount will be deposited in A's account. Same as for B. A the brand owner transfer the Rs 50/- (inclusive of or deducted the service tax amount) than please clear;
It is pre-clear that B & C will get registration under business auxiliary services.
Will A get registration under service Tax ?
Will A pay service tax on at his share ?


06 February 2016 Kindly confirm A is only selling his products in his office/branches based on his/dietitian recommendation and not providing any service.

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 February 2016 Dear Sir, A shall not sell any type of product in his office and his various branches means B & C will not sell any product. A, B & C will prescribe only Diet chart and some exercise.

07 February 2016 Whether A, B and C collecting any fees from their customers or not.




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Querist : Anonymous

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Querist : Anonymous (Querist)
07 February 2016 Yes of course A will collect Fee and B & C will also collect on behalf of A. Moreover B & C will get registration in service tax under business auxiliary service for Brand promotion of A. But question is under which taxable service A will get registration and how and why whether there is no service tax on Dietitian or Nutrition ?

08 February 2016 As per negative list these services are not exempted. Hence A has to get registered under 120 other taxable services and pay service tax. No small service provider exemption available to B & C as they are providing service under brand name.



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