Service Tax not Leviable on Visa
Facilitation
[Service
Tax Notification No. 137 dated 20th April 2011]
Subject: Assistance provided
for processing visa applications.
An issue has been
brought before the Board, seeking a clarification as to whether service tax
liability would arise on the assistance provided by visa facilitators, to
individuals directly, for processing of visa applications.
2. The same has
been examined. Assistance provided by a visa facilitator, for obtaining visa,
to a visa applicant or for foreign employer does not fall within the scope of
supply of manpower service. Visa facilitators, while providing visa assistance
directly to individuals does not act on behalf of the embassies, as agents of
the principal and hence service tax is not leviable
within the meaning of business auxiliary service. Also where the assistance is
rendered to an individual directly, by a visa facilitator, and the visa
applicant pays the service charge on his own (meaning
such service charge is not borne by any business entity), the same cannot be
considered as support service for business or commerce.
3. Visa
facilitators, merely facilitate the procurement of visa and directly assist
individuals who intend to travel abroad, to complete the immigration
formalities. Visa facilitators collect certain statutory charges like visa fee,
certification fee, attestation fee, emigration fee, etc. from the visa
applicant, which are remitted to the respective authorities, and in addition
collect service charges for themselves as remuneration for the assistance
provided by them to obtain the visa. Such a service provided by a visa
facilitator, in the form of assistance to individuals directly, to obtain a
visa, does not fall under any of the taxable services under section 65(105) of
the Finance Act, 1994. Hence service tax is not attracted.
4. However, service
tax is leviable on any service provided other than
assistance directly to individuals for obtaining visa, falling under the
description of any taxable service, as classifiable under the appropriate
heading. To cite a few instances, where in addition to rendering assistance
directly to individuals for obtaining visa, visa facilitators may also act as
agents of recruitment or of foreign employer, in which case, service tax is leviable to the extent under the service of ‘supply of
manpower’. In certain other cases, for example, a visa facilitator, may be
rendering visa assistance to individuals who are employed in a business entity,
but the service charge may be paid by the business entity on behalf of those individuals, to the visa facilitator, in which case, service
tax is leviable under ‘business support service’.
5. Trade
Notice/Public Notice may be issued to the field formations accordingly.
F.No.332/11/2010-TRU