Service tax applicability to agents of western union

[Guest]

whether service tax is applicable to agents 0f western union (WU), they use the brand name of WU and are commercial concerns, if yes from which date and whether these can be termed as commission agents. to avail the exemption notification benefit.

[Madhukar N Hiregange]

Actaul agreement maybe important. It appears that they could be under BAS/ BSS. Whether the brand name restriction applies to them would be known only if the way they work and how the name is used in relation to their work is seen. Commission Agents working for a consumer product compnay can also avail the 8 Lakhs exemption.

AI Summary

Service tax applicability to remittance agents hinges on contractual classification and brand usage affecting tax categorisation. Whether agents of Western Union attract service tax depends on their contractual relationship and how the Western Union brand is used; they may be classifiable under Business Auxiliary Services or Business Support Services if acting as intermediaries or support providers. Determination requires review of the actual agreement and operational facts. Eligibility to claim an exemption as commission agents turns on the nature of services rendered and the terms of engagement, as commission agents for consumer products have been able to claim the relevant exemption threshold.