Clarification on st for chit business
This query is : Resolved
18 August 2012
From the definition of service it looks primafacie that transaction in money or actionable
claims are excluded from the definition u/s 65B (44).
Hence can we conclude that all transaction in money like money lending pawn brokerage,
chits kuris etc,.. does not fall under the ambit of service .
we shall appreciate your views on this .
Thanks
claims are excluded from the definition u/s 65B (44).
Hence can we conclude that all transaction in money like money lending pawn brokerage,
chits kuris etc,.. does not fall under the ambit of service .
we shall appreciate your views on this .
Thanks
19 August 2012
In business chit fund certain commission received from members is retained by the promoters as consideration for providing services in relation to the chit fund it is not a transaction only in money. The consideration received for such service is therefore chargeable to service tax.
19 August 2012
So, by that analogy, & after the arrival of "negative list", is it OK to presume that all commissions recd in any form of business are subject to service tax b'coz in chit business basically what the promoter gets is a commission for pooling the members & their resources...
Secondly, when the definition says that any activity involving "transaction in money or actionable claim" is not service, isn't it right to conclude that the chit business, at core, involves money transaction only & commisison earned is part & parcel of it, hence not subject to S.T.
Secondly, when the definition says that any activity involving "transaction in money or actionable claim" is not service, isn't it right to conclude that the chit business, at core, involves money transaction only & commisison earned is part & parcel of it, hence not subject to S.T.
19 August 2012
It is the participants of the chit fund who pool the funds and are awarded prize money are involved in the activity of transaction in money. The promoters who earn commission for arranging such chit fund activities cannot be said to be involved in transaction of money and thus the commission that represent consideration for conducting such chit fund activity should be liable to service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Eway bill for machinery reparing
- Applicable TDS for Purchase of Flat from NRI
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Taxation in the hands of Landowner under JDA
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
