Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Tax Research Unit
Circular No. 137/6/ 2011– ST
North Block, New Delhi
20th April, 2011
To
Chief Commissioners of Central Excise and Service Tax (All),
Director General (Service Tax),
Director General (Central Excise Intelligence),
Director General (Audit),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
Subject: - Assistance provided for processing visa applications – reg.
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.
- 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.
- 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.
- 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’.
- Trade Notice/Public Notice may be issued to the field formations accordingly.
- Please acknowledge the receipt of this circular. Hindi version to follow.
(J. M. Kennedy)
Director, TRU
Tel: 011-23092634
F.No.332/11/2010-TRU