Service Tax not leviable under BAS on Service Charges received from Clients for Visa Consultation: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi Bench ruled that service tax is not leviable under business auxiliary services (BAS) on service charges received from clients for visa consultation.

The appellant,M/s. Modiline Travel Services Pvt. Ltd, claimed that it renders travel agent services to itsclients, which services include booking of air tickets, travel planning and itinerary management for domestic and international travel, assistance in procuring Foreign Exchange from authorised money changers, and assistance in filling up the application form for obtaining visa, and receives consideration for the same.

The appellant assists the travellers in filling up the application forms for obtaining VISA. The assistance involves help in preparation of the documents, filing up details and submission of the application. For this activity, the appellant recovers service charges from the travellers.

A Two-Member Bench of the Tribunal comprising Justice Dilip Gupta, President and Hemambika R Priya, Technical Member observed that “The services rendered by the appellant are not covered under the definition of BAS as the appellant is not involved in promotion and marketing or sale of any goods or service nor is the appellant providing any customer care service on behalf of the client or procuringgoods or services which are inputs for the client. While providing such services, the appellant does not act as an agent of the embassies or of the individuals who require the assistance in obtaining VISA and, therefore, such services are not provided on behalf of anyone. The activities of the appellant would not be covered under BAS.”

“In view of the aforesaid, service tax could not have been demanded from the appellant under BAS on the service charges received by the appellant from clients for visa consultation” the Tribunal concluded.

To Read the full text of the Order CLICK HERE

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