11 December 2009
Where is the need to be called a commcercial concern in BAS. Any person couldbe liable in my view. If you could clarify what is the nature of activity answer could be more specific.
12 December 2009
Assuming the service is classified as commission agent falling under Section 65(19) for business auxiliary service.
The term “Commercial Concern†was replaced by “ Any other Person†vide Finance Act,2006 but before this amendment the term “Commercial Concern†has never been defined in the act, so it was interpreted by the judicial forum time to time to settle the contentious issues. The inferences of these decisions broadly settled the term commercial concern as an institution or establishment that is primarily engaged in commercial activities. In another case the tribunal defined commercial concern as “having financial gain as an objectâ€. As per Illustrated Oxford Dictionary, commercial concern means “having profit as a primary aim rather than artistic valueâ€. Thus, only a commercial concern whose primary aim is to earn profit is sought to be taxed.
So in view of the above it is regardless whether incentive (commission) received by individual or partnership firm. The important is the motive to levy service tax not the structure of organization whether individual or partnership.
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