Service tax on wedding planners

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2012 HI,

we are wedding planners based in Udaipur Rajasthan and dealing purely in inbound business i.e forex only. we started business in 2004 and by mistake registered ourselves under event management considering our profession of wedding planning. for year 2004-05 we paid service tax whereas we were not supposed to as forex income was not taxable in that time. later we came to know this and we stopped collecting and paying tax. IN 2008 we were asked and surveyed and were given notice to pay service tax since 15 mar 2005. On researching for our defence we learned that wedding and wedding planning was not enrolled under service tax preview till 1st June 2007.

We are preparing our case but need to know how strong are our case from escaping our tax liabilities till 1st june 2007 as the services were not taxable.

thanks

VVS

U S Sharma

U S Sharma (Expert)
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05 January 2012 mere payment in forex does not exempt the ST liability , as the services are provided and consumed within india, payment in forex does not change the taxability of service provided, hence ST is payable

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2012 Service tax people have raised tax liability from 2004 to 2007, whereas marriages were not taxable till 1st June 2007. They have raised demand with 100% penalty without deciding our case (fyi, we have lost the case till supreme court against the stay order). whats the next step for us to do?? our case is very strong and we are not in position to pay the tax with 100% penalty. please advice what can we do??

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2012 Is it possible to speak to someone in this matter and explain the situation?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Hey! Here’s a breakdown of the issue and some suggestions:

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### Context on Service Tax & Wedding Planning (Pre-2007)

* **Wedding planning services** were **not taxable under service tax law before 1st June 2007**.
* Service tax on event management (which includes wedding planning) was introduced by **the Finance Act, 2007**, effective from **1st June 2007**.
* So, **service tax demand for the period before 1st June 2007 is generally not sustainable**, since the service was not taxable then.

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### What about the liability before June 2007?

* If the tax department is demanding service tax for wedding planning services **provided before 1 June 2007**, that demand is likely **incorrect**.
* You can **file an appeal** or **rectification request** against the demand on the grounds that the service was outside the tax net then.
* Even if a penalty is imposed, since the tax itself was not leviable, penalties can often be challenged and waived.

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### What about payment in foreign exchange?

* Payment in forex **does not exempt tax liability** if the service is provided and consumed in India.
* However, since wedding planning was not taxable pre-June 2007, forex payment is not relevant for that period’s taxability.

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### Next steps you can take:

1. **File an appeal** with the Commissioner (Appeals) or appropriate tribunal against the demand and penalty.
2. **Submit a stay application** to temporarily suspend payment during appeal.
3. Engage a tax consultant or advocate who specializes in service tax litigation to represent your case.
4. Highlight the non-taxability of wedding planning services before June 2007 with references to the Finance Act 2007.

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### Legal references you can use:

* **Finance Act, 2007**, Service Tax Amendment: Introduction of tax on event management services (which includes weddings) from 1 June 2007.
* **Service Tax Circulars and notifications** stating the effective dates of taxable services.

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If you want, I can help draft an appeal or provide relevant extracts from the law and notifications to strengthen your case. Would you like that?

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