Dear All
One of my client provides services to its distributor & retailer network which is primafacie exempted from Service tax by virtue of Mega Exemption Notification of 20-06-2012. However, to give such service, he charges from all his distributors & retailers one time activation charges (for joining the network). my question is ARE THESE ACTIVATION FEES COLLECTED SUBJECT TO SERVICE TAX? IF YES, THEN UNDER WHAT CATEGORY THE REGISTRATION SHOULD BE OBTAINED? The Service does not fall specifically under the 119 Service descripttions restored. Should it be registered under 120-Residual category or it should not be registered at all because the main service being provided is exempt for the time being.
Plz advise
CAclubindia
