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Place of provision of service rules

Darshan Dodiya (Student CA Final ) (392 Points)

25 June 2013

Hello sirs!!

My querry is regarding Rule 9 of Place of Provision of service Rules,2012 relating to intermidiary service wherein Intermidiary only for services are considered.

For example

"Mr. X, an intermidiary who is consulted by Mr. Y to purchase a machine. Mr. X recommends X ltd. who supplies machine to Mr.Y as well as repairs and maintenance services relating to machine. X ltd. raises different invoices for the machine supplied as well as repairs and maintenance services provided.

My querry is

Whether Mr. X would be an intermidiary liable for service tax under this Rule or any other Rule, as he is not intermidiary only for services but goods as well.

Thanx in anticipation.

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2 Replies

Ashish Tibrewal (job) (80 Points)
Replied 25 June 2013

Rule 9 of Place of Provision (POP) of service Rules,2012, Defines whether the service provided is in the taxable area or not, it does not says that the transaction is liable to service tax or not.

Scenarios Whether an intermediary Service

A commission agent (buying or selling agent) in respect

of services Yes

A commission agent (buying or selling agent) in respect

of goods No

Darshan Dodiya (Student CA Final ) (392 Points)
Replied 25 June 2013

Originally posted by : Ashish Tibrewal

Rule 9 of Place of Provision (POP) of service Rules,2012, Defines whether the service provided is in the taxable area or not, it does not says that the transaction is liable to service tax or not.

Scenarios Whether an intermediary Service

A commission agent (buying or selling agent) in respect

of services Yes

A commission agent (buying or selling agent) in respect

of goods No