Category - Management consultants, taxability

[Vijay Chitte]

Dear friends, We are proving a Liaisoning work to the various needs for services of our Customers, with various goverment, semi government agencies, statutory authorities, regulatory authorities, government hospitals and institutions, as per the requirement of our customers in the following areas: Assist in discharging the liability of export obligations of the company and to prepare representation for reduction of export obligation, To guide for maintaining cordial relations with the major customers i.e. company's distributors, stockiest, various authorities and agencies, statutory organizations i.e. Drug Authorities, Druggist Association, Medical Representative Associations etc, To support / coordinate liaison with legal advisors, bankers, financial institutions, stock exchanges, insurance companies etc. , To coordinate or liaisoning with the Gujarat Electricity Board / Environmental pollution control board to represent and safeguard the interests of the Company. As per my opinion this activities still not taxable, i have also found in the category of 'Mgm Consultant Service' and liaisoning activity are not covered in the defination of Mgm consultant. If it is taxable, Under which category? and How? Please guide to us and take me to the right track with complying Service tax rules. Regards, Vijay Chitte-Claris

[Surender Gupta]

Your services are taxable indeed. The question remains only of classification. Business Auxiliary Service and Business Support Services are the most suitable heads. You may take the final dicision on the basis on Section 65A with detailed and critical analysis of each services.

[Madhukar N Hiregange]

You could rpobabaly check out the public relations services whcih appear to cover some of the activties described by you.,

AI Summary

Service tax classification: liaisoning and coordination services are taxable and fit under business auxiliary or support services. Liaisoning and coordination services facilitating interactions with government, regulatory, financial and trade bodies are taxable and should be classified after detailed analysis under Business Auxiliary Service or Business Support Service, with some activities possibly falling under Public Relations Service; providers must align invoicing and returns with the selected taxable category to ensure compliance.