12 - Person Liable to Pay Service Tax

W.e.f. 01/03/2015 vide notification 07/2015-ST, dated 1st march, 2015 , the concept of aggregator is introduced. As per Rule 2(1)(aa), “aggregator” means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator.

As per Rule 2(1)(d)(iAAA), "person liable for paying service tax " - In relation to service provided or agreed to be provided by a person involving an aggregator in any manner, the aggregator of the service. 

Provided that if the aggregator does not have a physical presence in the taxable territory, any person representing the aggregator for any purpose in the taxable territory shall be liable for paying service tax.

Provided further that if the aggregator does not have a physical presence or does not have a representative for any purpose in the taxable territory, the aggregator shall appoint a person in the taxable territory for the purpose of paying service tax and such person shall be liable for paying service tax.