Service tax applicability - category

[pravinchandra salian]

In the manufacturing unit we have our own weighing scale for our finished goods near the factory gate. In our factory premises one more factory is operating with different identity. The ingoing and outgoing of material is the same way for both. Now the other factory is weighing their finished in our weighing scale for which charge a nominal amount. Whether service tax is applicable on the nominal amount under the category of Business Support Service or any other category.

[Brijesh Verma]

Dear Mr. Salian, Apparently there seems to be no Service Tax on the type of services you provide. These seem to be 'Dharam Kaanta' services that you provide and still there is no category under which tax is leviable on such activities.

[Guest]

Views express by Mr. Brijesh Verma are correct as there is some old case deciding that the Dharam Kanta Service is not taxable. However, with the introduction of Business Support Service, the confusion crept into. But, even now, weighing scale service my not be held as providing servcie to support business of your client. This service can be used by anybody whether engaged in business or not. Merely because, this service is being used by some business organization, the same can not become business support service.

[Guest]

No , becaues there is no client and service provider relationship. I cannot provide service to my self

AI Summary

Service Tax Not Applicable for Manufacturing Unit's Weighing Scale Use; No Client-Service Provider Relationship Exists A discussion on the applicability of service tax for a manufacturing unit that charges a nominal fee for another factory using its weighing scale. Three contributors provided insights. The first response suggests no service tax applies as the service does not fall under any taxable category. The second agrees, noting past cases where similar services were not taxed, and argues that weighing services do not constitute business support services. The third response concurs, emphasizing the absence of a client-service provider relationship, which is necessary for service tax applicability.