service
This query is : Resolved
SARATHY RP
(Expert)
27 July 2009
I am sure you are asking this query with service tax in mind. Service has not been defined under the Service Tax Law.
A wide range of economic activities can be called Services. Most of these transactions are intangible and invisible. In many cases Service cannot be stored. However, there are exceptions. For example a report of the consultant can be stored in Computer. The computer is visible and the service is capable of being stored.
We can take Service definition from Consumer Protection Act. It reads as under:
“Service means service of any description which is made available to potential users and includes provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under any contract of personal service”.
The further emphasis:
Service may be merely made available. The actual utilization is not important. For example, an AMC job is taken by a vendor – Service is made available. However, if there were no break down during the period of contract, the service was not utilized.
Free service and personal services are excluded.
While distinguishing between Goods and Services, in UK it was quoted “what cannot be dropped on foot is a service”
Hence we can say that the concept of service is very wide and the proper interpretation would depend on the context in which it has been used in an enactment.
For more enrichment, please refer to TCS Vs. State of AP 2004 (178) ELT 22 (SC).
A wide range of economic activities can be called Services. Most of these transactions are intangible and invisible. In many cases Service cannot be stored. However, there are exceptions. For example a report of the consultant can be stored in Computer. The computer is visible and the service is capable of being stored.
We can take Service definition from Consumer Protection Act. It reads as under:
“Service means service of any description which is made available to potential users and includes provision of facilities in connection with banking, financing, insurance, transport, processing, supply of electrical or other energy, board or lodging or both, housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under any contract of personal service”.
The further emphasis:
Service may be merely made available. The actual utilization is not important. For example, an AMC job is taken by a vendor – Service is made available. However, if there were no break down during the period of contract, the service was not utilized.
Free service and personal services are excluded.
While distinguishing between Goods and Services, in UK it was quoted “what cannot be dropped on foot is a service”
Hence we can say that the concept of service is very wide and the proper interpretation would depend on the context in which it has been used in an enactment.
For more enrichment, please refer to TCS Vs. State of AP 2004 (178) ELT 22 (SC).
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