The Finance Act, 2006 recieved its assent from the President of India on 18th April. And from 1st May, all the new services brought into the ambit of service tax shall be chargeable to tax. One such service “support services of business or commerce” will also be chargeable to service-tax.

Support services of busines or commerce has been defined as “…means services provided in relation to business or commerce and includes…………………..”. Thus, the definition given is very exhaustive.

Considering such an exhaustive definition, me thinks that almost each an every ancilary service to the business shall be brought uder the tax ambit. For eg, a photocopy machine, tea-cofee machin installed in office, facility management service, a vendor providing electrician for small maintenance of offices, services of lawyers to clients, banks etc…u name it and it shall be covered under this definition and would attract tax.

Now, I would like to know, what would happen in the following situation….

1. Whether photocopy services being provided by firm will get charged (a) if the photocopying is provided from its own shop and (b) if the same is provided by providing the machine, man and material at their office.
2. Services of lawyers being provided to banks for vetting the security documents and making inspections and giving non-encumberance certificates.

There may be n number of such services. Some are directly covered and if not covered, it may get covered by this general provision. View of learned participants of the group is solicited.

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