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TMI BlogTaxabilty ?X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxabilty ? X X X X Extracts X X X X X X X X Extracts X X X X ..... e details in the gift voucher and will send back to Y with an amount of Rs:20000/- and on receipt of filled up gift voucher and Rs: 20000/- from the customer, Y will arrange for the holiday package, including travel cost, boarding and lodging , which will cost to Y approx Rs:50000/-. Further against the gift vouchers initially sold by Y to X , the X company instead of making any payment has given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift voucher of his company to Y. redeemable at any of its outlets . Please advise how this would be chargeable under service tax. Reply By Rama Krishana: The Reply: One thing is missing in the query is that, whether Y is providing any service to X apart from providing gift vouchers to X. Assuming that the answer is yes, you have to see that whether gift vouchers are in relation to any service be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing provided by Y to X. On the other side if Y is not provided any service to X, in that case, services of Y shall be merely of promoting brand name of its own services. I thing, the service, if was not taxable earlier, the same would be taxable after the date to be notified, as introduced by Finance Act, 2010. The new category is "Promoting a 'brand' of goods, services, events, business entity et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c."
Reply By Harish Chander Bhatia:
The Reply: Y is providing services to the customers of X for providing hotel accommodation and air tickets etc. Is it not advisable to charge sales tax for the vouchers sold by Y to X ? The services should be charged on the amount received from the customer of X to Y. Please advice. X X X X Extracts X X X X X X X X Extracts X X X X
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