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Saturday, January 12, 2008

opinion polr" means any service designed to secure information on public opinion regarding social

Indian Service Tax

Opinion Poll Services

Effective Date: 10/09/2004.

Authority: Finance (No.2) Act, 2004

Rate of Service Tax: 10% - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definitions: "opinion polr" means any service designed to secure information on public opinion regarding social, economic, political or other issues, [Section 65 (75a)]

"opinion poll agency"means any person engaged in providing any service in relation to opinion poll; [Section 65 (75b)]

Taxable service: Taxable service means any service provided to any person, by an opinion poll agency, in relation to opinion poll, [Section 65 (105) (zzs)]

Value of taxable service: Gross amount

Exemptions: See Notification No. 18/2004-ST, dt. 10/9/2004 at the end of the Chapter of "Airport Services".

  • Academic polls

  • Survey

  • Market Research

Person liable to pay: Opinion Poll Service provider.

Head of Account: To be issued.

Main text of Department Circular/TN

F.No. B2/8/2004-TRU, Date: 10/9/2004

08. Opinion poll services: Services provided by an opinion poll agency (i.e. any person providing that service) in relation to opinion polls are taxable under this category. Opinion poll means securing information on public opinions regarding social, economic, political and other issues. The term 'securing' would include activities like selecting the target groups, preparing questionnaires, gathering opinions from such target groups, collating their responses, drawing conclusions or analyzing trends and preparing reports based thereon. A similar service i.e. 'market research agency service' is taxable since 1998. However, that service includes conducting of market research in relation to products, services and utilities. Opinion polls conducted to secure information on economic issues do not include such market researches about specific products, services or utilities. Therefore, obtaining opinion of general public on economic issues like price rise, reaction of people to certain government or corporate policies etc., would fall under the category of opinion poll services while infonnation gathered in relation to specific products, services etc. would fall under 'market research agency service'.

Notification

Exemption

[Notification No. 18/2004-ST, dt. 10/9/2004]

For full text see under "Airport Services".

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