Suppose Mr A hires Taxi from UBER Company through Mobile App

UBER Company sends  a car from Raju Taxi  Service to Mr A

Here

Mr Raju Taxi Service is Service provider

Mr A is  Service Provider and

UBER is Called Aggregator

With effect from 1/3/2015, the Aggregator UBER is liable to pay Service tax even though he is not service provider or service receiver

 

Notification No. 5/2015 ST dated 01.03.2015

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

 

What is Brand Name?

Brand name or trade 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

symbol

Monogra,

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”

Who is liable to Pay Service Tax

Case

Who is liable to pay Service Tax

Aggregator located in India

Aggregator

Aggregator does not have physical presence in the taxable

Territory but has representative in India

Person representing the Aggregator

Aggregator does not have

Physical presence

And

Does not have representative in India

 

Aggregator has to appoint a person to pay service tax

And

Such person so appointed shall be liable to pays service tax

  1. Indirect Tax
  2. Amendments Indirect Tax for 2016 2017 Exams
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST and Tax E-filinf training in Delhi. Register now.