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04-Jun-2017 03:01

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It is not possible to give an exhaustive list of business auxiliary services, the following are illustrations of services that are covered under this category viz.

Lotteries (Regulation) Act, 1998 enables State Governments to organize, conduct or promote lotteries.

So, if process amounts to manufacture the duty of Excise will be levied and if it does not amount to manufacture the Service Tax can be levied.

Notification 8/2005-ST dated exempts the taxable service of production or processing of goods for, or on behalf of, the client, from Service Tax.

Since, Insurance services and Clearing and Forwarding Services are more specific description and were also subjected to Service Tax prior to imposition of tax on business auxiliary service, the insurance agents, Clearing and Forwarding agents working on commission basis would fall under those respective categories.

From this, it follows that a particular service can be taxed only under one head of service.

Lotteries (Regulation) Act, 1998 enables State Governments to organize, conduct or promote lotteries.

So, if process amounts to manufacture the duty of Excise will be levied and if it does not amount to manufacture the Service Tax can be levied.

Notification 8/2005-ST dated exempts the taxable service of production or processing of goods for, or on behalf of, the client, from Service Tax.

Since, Insurance services and Clearing and Forwarding Services are more specific description and were also subjected to Service Tax prior to imposition of tax on business auxiliary service, the insurance agents, Clearing and Forwarding agents working on commission basis would fall under those respective categories.

From this, it follows that a particular service can be taxed only under one head of service.

Service provided by the distributors or agents in relation to promotion or marketing of lottery tickets are leviable to Service Tax.