Question ID : 1184

service tax - business auxillary services ?

A - Manufacturer
B - Commission agent
C - Brand Owner
Tri agreement between A, B & C.
B to procure s from the market and get the production done from A.
Billg to be done by A, manufacturer on its sales voice as they have VAT regn & excise regn, to the distributors as under
Consignee:- Distributors XYZ (On A,c - B)
B to pay conversion charges , bottlg fees to A, excise duty payable on the production & vat payable on the production.
B to pay royalty to C for use of brand.
Will the conversion charges payable by B to A be liable to service tax? If yes, under which head?

Note: The fal sales turnover would reflect the books of A sce coices are raised by A. Year end stock, debtors and creditors will also be shown the bance sheet of A. B is eligible for commission only. '

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