Business Auxiliary

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.... or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client. (v) production or processing of goods for, or on behalf of, the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi) such as billing, issue or collection or reco....

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....terial or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable. Meaning of Manufacture: As per clause (f) of section 2 of the Central Excise Act, 1944; "manufacture" includes any process,- (i) incidental or ancillary to the completion of a manufactured product; and (ii) which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or (iii) which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labeling or re-labelling of containers including the declaration or alteration of retail....

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.... the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn." B. Further Circular No 96/7/2007 dated 23/8/2007 clarifies that :- Issue - 048.01 / 23.08.07 Whether commission received by distributors for distribution of mutual fund units is liable to Service Tax under business auxiliary service? Clarification Distributors receive commission from mutual fund for providing services relating to purchase and sale of Mutual fund units. Services provided by such distributors are in the nature of commission agent and are, thus, liable to service tax under business auxiliary service [section 65(105)(zzb)]. C. Extracts from Circular No. D.O. F. No.334/13/2009-TRU dated 6-7-2009 3.1....