Aggregator service

[SANDESH SHINDE]

DEAR SIR,

PLEASE EXPLAIN REGARDING Aggregator service BASICALLY WHICH TYPE OF SERVICE WILL IT BE AS PER NOTIFICATION 05/2015 ST. INCLUSION OF NEW SERVICE UNDER REVERSE CHARGE MECHANISM SERVICES.PLS EXPLAIN,THANKS and REGARDS.

[DR.MARIAPPAN GOVINDARAJAN]

Rule 2(1)(aa) as inserted vide Notification No. 5/2015-Service TAx, dated 01.03.2015 defines the term 'aggregator' as a person, who owns and manages a web based software application and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator.

Rule 2(1)(bca) defines the term 'brand name or trade name' as a brand name or a trade name, whether registered or not, that is to say, a name of a mark, such as an invented word or writing, or a symbol, monogram, logo, label, signature, which is used for the purpose of indicating or so as to indicate the connection, in the course of trade, between a service and some person using the name or mark with or without any indication of the identify of that person.

[SANDESH SHINDE]

Dear Sir,Thanks for the reply but can you please give me some examples of such service.

[DR.MARIAPPAN GOVINDARAJAN]

I will try.

[Mahir S]

Sir,

A new concept of aggregator has been introduced to facilitate easy collection of service tax from a single platform in case of online services provided by such aggregators.

For example, www.cleartrip.com connects various airliners, hotels, etc with potential customers. For the value of services provided by the airliners, etc, the aggregator is required to pay service tax if the aggregator's webpage was used to connect the service provider and the service recipient. But for this model, the airliners were required to pay service tax on their services provided now.

[Radha Arun]

There are two ingredients in the service of "aggregator": (I) he connects customers to the service providers; and (ii) the service is provided under his brand name.

Thus, cleartrip is not an aggregator. But Ola Cabs or Uber cabs are aggregators. The cabs are actually owned by the drivers, and the brand owner only connects us to the available cabs. But the service is provided under the aggregator's, i.e. Ola / Uber's brand name.