Category of Direct Marketing Associates (DMA) in service tax

[Asked by Guest]

whether Direct Marketing Associates (DMA)of HDFC/ICICI Bank are covered under Business Auxilary Services Head? if no then under which head?

[Surender Gupta]

This activity is falling under the Business Auxliary Services. Though it may be a point of argument that whether this activity is promotion or marketing of goods or of services. But, certainely it is either of the two. Therefore the business auxiliary service is the appropriate head.

AI Summary

Business Auxiliary Services: direct marketing associates for banks qualify under this service category for service tax purposes.
The advisory concludes that Direct Marketing Associates engaged by banks are classifiable under Business Auxiliary Services for service tax purposes, while noting an arguable distinction whether the activity constitutes promotion or marketing of goods or of services; in either event the activity falls within the business auxiliary services characterisation.