Service Tax = Part A 4 = Term Service under Finance Act 2012 Clause 44 S...

The Finance Act, 2012 has defined a term “Service”
for the first time. Clause (44) of
Section 65B of the Act has defined a term Service as under:

“Service” means

·       any
activity
carried out by a person

·       for
another

·       for
consideration,

and

·       includes
a declared service,

but shall not include–

but shall not include–

(a) an activity which constitutes merely,–

(i) a transfer of title in goods or immovable property, by way of sale, gift or in
any other manner; or

(ii) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause
(29A) of Article 366 of the Constitution; or

(iii) a transaction in money or actionable
claim;

(b) a provision of service by an employee to
the employer in the course of or in relation to his employment;

(c) fees taken in any Court or tribunal
established under any law for the time being in force.

Explanation
1 – For the removal of doubts, it is hereby
declared that nothing contained in this clause
shall apply to–

(A) the functions performed by the Members of
Parliament, Members of State Legislative, Members of Panchayats,

Members of Municipalities and Members of other local
authorities who receive any consideration in performing the
functions of that office as such member; or

(B) the duties performed by any person who
holds any post in pursuance of the provisions of the Constitution in that capacity; or

(C) the duties performed by any person as a
Chairperson or a Member or a Director in a body established by the
Central Government or State Governments or local authority and who is not deemed as an employee
before the commencement of this section.

Explanation
2 – For the purposes of this clause, the
expression “transaction in money or actionable
claim” shall not include –

(i) any activity relating to use of money or
its conversion by cash or by any other mode, from one form, currency or
denomination, to another form, currency or denomination for which a separate consideration is charged;

(ii) any activity carried out, for a consideration, in relation to, or for
facilitation of, a transaction in money or actionable claim, including the activity carried out –

(a) by a lottery
distributor or selling agent on behalf of the State Government in
relation to promotion,marketing, organising, selling of lottery or facilitating
in organising lottery of any kind, in any other manner in accordance with the
provisions of the

Lotteries (Regulation) Act, 1998;

(b) by a foreman
of chit fund for conducting or organising a chit in any manner.’;

Explanation
3 – For the purposes of this Chapter, –

(a) an unincorporated association or a body
of persons, as the case may be, and a member
thereof shall be treated as distinct
persons;

(b) an establishment of a person in the
taxable territory and any of his other
establishment in a non taxable territory shall be treated as establishments
of distinct persons.

Explanation
4 – A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an
establishment in that territory;

ECL=PEQ=01=FEMA For CS Executive Students Review of Past Examination Que...