TMI BlogClassification of Taxable Services upto 30.6.2012X X X X Extracts X X X X X X X X Extracts X X X X ..... es: Nature of Services versus Person providing Services D. Can exemption notifications determine / change the classification? E. Departmental Clarifications ========== Section 65A of the Service Tax ( Chapter V of the Finance Act, 1994 ) Section 65A has been inserted by the Finance Act, 2002 with effect from 14-05-2003. Before insertion of this section, there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separate sub-clauses are in existence for the various services involved in the composite serve. c) Classification shall be determined in accordance with the taxable service or in accordance with the person who is providing taxable service. ========== B If a taxable service prima facie, classifiable under two or more sub clauses: - [ Section 65A(2) ] (i) Where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be classified as if they consisted of a service which gives them their essential character, insofar as this criterion is applicable. But the provision of this clause shall be applicable only it the classification can not be determined in accordance with 65A (2) (a). When a service cannot be classified in the manner as above, it shall be classified under the sub-clause which occurs fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with the person providing services - Chartered Accountant in his professional capacity - Cost Accountant in his professional capacity - Company Secretary in his professional capacity - Architect in his professional capacity 3 Few examples where services taxable in accordance with the person providing services as well as nature of services - Stock broke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at what category of taxable service is suitable for a particular service provided by the provider of services and than an exemption notification should be applied. There is nothing in the Act or Rules made there-under that suggest that first exemption will be determined and than classification will be done. Under Service tax an exemption notification is issued under section 93 . This sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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