Service Tax on Call Center Services

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Call Center services fall under the head "Business Auxiliary Services". However, call center services were exempted from Service Tax w.e.f. 1st June, 2003 vide Notificaion No. 8/2003-Service Tax dated 20th June, 2003. But later vide Notification No. 2/2006-Service Tax dated 1st March, 2006 the former notification was rescinded w.e.f. 1st March, 2006.

Taxmann's Service Tax Manual having a compendium of all the notifications doesnt include Notification No. 2/2006-Service Tax dated 1st March, 2006. Hence, I was wondering on the status of the said notification.

The consequential question is that whether call center services are presently liable to service tax?

Replies (5)

chamatkaribaba

Practicing Indirect Tax

97 Points Joined November 2008

Dear Ankit, Call Center services/Business Process Outsourcing/any other kind of outsourcing will be now taxable under "Business Auxiliary Services". As you rightly said, they have been made taxable from 2006 itself.

Should you need any further clarifications, please let me know.

karinabartram

klhgy5ryt

26 Points Joined May 2011

If the services provided by your vendor to you is taxable, they will charge service tax to your company. It is clarified that service tax is leviable on any coaching or training provided by an institution on commercial basis. Compute service tax on reverse charge for recipient of services. Compute service tax payable for service provider. Deposit Taxes and tax accounting. Call Center services will be taxable under "Business Auxiliary Services".

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Miami Real Estate Attorney | Real Estate Attorney Miami Beach

Harpreet

* * * * * *

1670 Points Joined March 2008

Ankit there is no confusion as you have answered of your question itself.

harsh srivastava

article

24 Points Joined August 2009

is call center service covered under export of service clause...

Ek call center hai india mein... usne USA ki company se contract kiya...ki wo uske sabhi customers ko chat support degi... USA ki company ke 90% customers indians hain... ab service tax applicable hai ya nahi... export of service ki definition mein aa raha hai ya nahi????....

call center delhi se kaam karega. USA ki company ka office bangalore mein bhi hai...

Vishal

CA Business

21 Points Joined June 2013

Hi,

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