Service Tax on Multi Leval Marketing co

Queries 518 views 3 replies

One of my assessee being a multi marketing company charges entrance fees from its members and sell some products to its members. Company is giving free accidental insurance & Life Insurance to its members. I want to know whether company is liable to pay service tax. If yes in which category case falls.

Replies (3)

It is my view only,

The assessee is not providing service, hence he is not compulsory to service tax registration & charge service tax to customers, 

He is only selling the material, then he is applicable for VAT only.

In the view of above information Service tax registration is not required in this case and providing free accidental insurance & Life Insurance to its members is not a service, its only a perqusite.

hi

 

with regard to enterance fees please check "CLUB AND ASSOCIATION" .  It may come under the ambit of this service.


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