Definition and meaning of term ‘services’ under service tax
The statutory definition of term “ Service” is given below :-
“service” means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include—
(a) an activity which constitutes merely
- a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or
- 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. – Provides that for the purpose of this clause transaction in money shall not include any activity relating to the use of money or its conversion by cash or byany other mode, from one form, currency or denomination to another form, currency or denomination for which a seprate consideration is charged.
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.