Definition of Service

[Admin TMI]

Question - What are proposed change in definition of service in Finance Bill 2015 ?

[Admin TMI]

The intention in law has been to levy Service Tax on the services provided by:

(i) chit fund foremen by way of conducting a chit.

(ii) distributors or selling agents of lottery, as appointed or authorized by the organizing state for promoting, marketing, distributing, selling, or assisting the state in any other way for organizing and conducting a lottery.

However, Courts have taken a contrary view in some cases, while in some cases the levy has been upheld.

An Explanation is being inserted in the definition of “service” to specifically state the intention of the legislature to levy service tax on activities undertaken by chit fund foremen in relation to chit, and distributors or selling agents of lottery in relation to lotteries.

AI Summary

Proposed Changes in Finance Bill 2015 Aim to Clarify Service Tax on Chit Funds and Lottery Agents The discussion focuses on proposed changes in the definition of 'service' in the Finance Bill 2015 concerning Service Tax. It highlights the legislative intent to impose Service Tax on services provided by chit fund foremen and lottery distributors or agents. Despite some court rulings against this levy, an explanation is being added to clarify the legislature's intent to tax activities related to chits and lotteries. The forum serves as a platform for knowledge sharing on this topic.