Meaning of term ‘service’ under service tax
Service is (Sec 65B (44))
- Any activity
- For consideration
- Carried out by a person for another
- And includes a declared service
In the absence of any of these essential ingredients, the activity will be not be considered as service. Also, the activities which are covered under the declared service category will automatically become service
But ‘Service’ does not include –
- Any activity that constitutes only a transfer in title of (i) goods or (ii) immovable property by way of sale, gift or in any other manner
- A transfer, delivery or supply of goods which is deemed to be a sale of goods within the meaning of clause (29A) of article 366 of the Constitution
- A transaction only in (iv) money or (v) actionable claim
- A service provided by an employee to an employer in the course of the employment.
- Fees payable to a court or a tribunal set up under a law for the time being in force
All services, other than services specified in the Negative List, provided or agreed to be provided in the ‘taxable territory’, by a person to another would be taxed.