Just Got Served (contd)……..
This is a continuation of the article Just Got Served
Rule 2(bca) of the Service Tax Rules define ‘brand name or trade name’ as,
“‘brand name or trade name’ means, a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as an invented word or writing, or a symbol, monogram, logo, label, signature, which is used for the purpose of indicating, or so as to indicate a connection, in the course of trade, between a service and some person using the name or mark with or without any indication of the identity of that person.”
We know that the aggregators have been brought under the Service Tax net, we know the meaning of an aggregator, we know that only if the brand name of trade name of the aggregator is used by the service provider will the transaction be liable for service tax and finally we also know as to what a brand name or trade name is. So, who is the one who gets to bell the cat?? Meaning of all the people involved in this process (viz. aggregator, service provider, customer) who is liable to collect and remit Service Tax to the government’s account ??
The answer to that question isn’t half as complex as the question itself… It’s the aggregators of course !! The aggregators are the ones responsible to pay the service tax. If they are not based out of India but have an office in India then that office is liable to pay Service Tax on behalf of an aggregator. However what would be the case if the aggregator is neither based out of India nor is do they have an office in India?? Well, in that case the aggregator would have to appoint a person who shall act as the authorised representative of the aggregator for the purpose of payment of service tax. Also, one other thing of note here is that the aggregator is the one who pays the entire amount of service tax and does not split his burden with the service provider. And here’s the kicker all this has been in place since March 2015 and we didn’t even realise it till now as all we needed to do was to ensure we have enough balance in our Paytm account!!! Happy New Year folks…..