Service tax on affiliation fees

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Will there be service tax charged on affiliation fees?

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MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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08 July 2013 Depends on whether provision of any service is involved or not....

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2013 Allowing to use the name, whether it will be considered as provision of service?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Great question! Here’s the scoop on **service tax on affiliation fees**:

* **Affiliation fees** generally involve allowing a person or entity to use your brand name, logo, or be part of your network.

* The key factor is: **Is this “allowing use” considered a service under service tax law?**

### What the law says:

* Service tax is leviable on **“licensing or permitting the use of a trademark or brand name”** — this is considered a taxable service under “intellectual property services” or similar heads.

* So, if the affiliation fee is for **permitting use of your brand name or trademark**, **service tax applies** on that fee.

* If the affiliation fee is purely a membership fee without any service or benefit provided, it may not be taxable.

### Summary:

* **If the affiliation fee grants a right to use your name/logo/brand = Service tax is applicable.**
* **If it’s just a membership or registration fee without service = May not attract service tax.**

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