Service tax on licence fee (Service Tax)

This query is : Resolved

sita ram soni

( Author )
16 July 2012

We are going for ISO certificacation. The agency auditing for ISO have demanded service tax on Audit fee Plus Licence Fee for 3 years and application fee.

Please clarifie that weather the service tax is applicable on Licence fee & Application fee

RENGARAJ R.K

( Expert )
16 July 2012

The Agency auditing party is government or not? If he is government agencies,

From 01.07.2012, all Governmental support services is under reverse charge mechanism. Therefore the Governmental agencies need not collect any service tax, and it is to be borne by the service receiver.

6.In respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994

For this the service receiver has to pay service tax on 100% of the value. Please check up whether such fees are under support services.