TaxTMI 
TaxTMI 
Service tax applicability to agents of western union
10 Jul 2007 
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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. (AI Summary)
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. (AI Summary)
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.