Memorandum of understanding-for business promotion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2011 A Government company enters into Memorandum of Understanding (MoU) with other organisations (strategic partners) for the purpose of increasing the scope of business of both. Thorough this MoU, the strategic partner will be able to participate in the Tenders which are exclusively earmarked for Public sectors like, projects of national importance, defence, Government Projects etc. The Government Company is charging an amount as MoU fee from strategic partners. ( fee depends upon the nature and size of business ).
My doubt is whether Mou fee is chargeable to Service tax under ST Laws? It seems to be covered under Business Auxiliary Service, since promotion or marketing of service of client is specifically includible in BAS. Kindly clarify..

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2011 Heloo experts kindly answer my query.........