Service tax applicability in the same company

[Asked by Guest]

If one division of the company renders service ( ERP Implementation) to other manufacturing divisions of the same company...Is such service under the purview of the service tax?

[Surender Gupta]

As per general provisions, no person can provide the service to self. Therefore, if one division of the company renders services to other manufacturing division of the same compnay, it will not come with in the purview of the service tax.

AI Summary

Intra company service: no service tax liability when divisions supply services to each other within the same legal entity.
The controlling principle is that no person can provide a service to itself; intra-entity transfers of services between divisions of the same legal person are not treated as taxable services, and services rendered by one division to other divisions of the same company do not fall within the purview of service tax.