IS MLM BUSINESS PAYABLE FOR SERVICE TAX ?

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This query is : Resolved

AJIT (Querist)

29 September 2007 I am doing one type of DSS(MLM) business named "RCM BUSINESS". I want to know that this type of business income is payable for service tax or not.
There are so many confusion about service tax.
plz give me proper guidelines.

my e-mail ID is aajitpatel@rediffmail.com

plz reply me as soon as fast

thanking you
AJIT PATEL

Shyam Lal Naik

Shyam Lal Naik (Expert)

29 September 2007 It might be covered under Business Auxilliary Services.

How ever, U need to provide complete detail of the arrangement/agreement with your principal.

R.V.RAO

R.V.RAO (Expert)

30 September 2007 1.BUSINESS OR COMMERCE SUPPORT SERVICES
2.BUSINESS AUXILIARY SERVICES
3.FRANCHISER PROVIDING FRANCHISE SERVICE
4.ONLINE INFORMATION & DATA ACCESS/ RETRIEVAL SERVICES.
OF THE ABOVE FOUR CATEGORIES, PL DECIDE WHAT EXACTLY YOU DO TO FALL IN SERVICE TAX.
THE SERVICE TAX ACT CATEGORISES NEARLY 105 SERVICES.
BUT THEN THE ANNUAL EXEMPTION LIMIT FOR THE SERVICE PROVIDER IS RS. EIGHT LAKHS AND REGISTRATION REQUIRED WHEN YOU REACH RS, SEVEN LAKHS THRESHOLD LIMIT.
MULTI LAYER MARKETING OR MLM NEEDS ENROLLING OR ADDING LAYERS OR CHAIN IN EACH STAGE.
SO AT WHAT STAGE YOU RENDER SERVICE AND FOR HOW MUCH VALUE (AS QUANTIFIED IN RUPEES FOR TOTAL ANNUAL SERVICE) IS THE DECIDING FACTOR . BUT THEN YOUR PARENT ORGANIZATION FOR MLM WHERE YOU ENROL AND YOUR CHAIN BELOW YOU AND ABOVE YOU ALSO NEED TO BE CONSULTED FOR SERVICE TAX LIABILITY. BECAUSE A SINGLE MEMBER ACTION IN THE WHOLE CHAIN AFFECTS AND GET AFFECTED BY OTHERS IN THE MLM.
R.V.RAO

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