Whether registration fee, processing fee and other fee charged by Vat department from vat dealers shall become exigible to service tax w.e.f. 01-04-2016:

As per NN 6/2016 dated 18-02-2016 read NN 7/2016, all services by government to business entities having turnover more than 10 lacs shall become taxable under service tax law w.e.f. 01-04-2016. As per Rule 40A of Punjab Vat Rules w.e.f 01-10-2013, every taxable person is required to pay annual processing fee in the month of October. Further registration fee of Rs. 2000 u/R3 (2); duplicate RC fee Rs. 100/-u/R 6; Amendment and other purpose fee u/R 87; Fee of Rs. 2500/- for disputed questions u/R 89 rws S.85, might also get covered.  Held by Supreme Court in Om Parkash Aggarwal v. Giri Raj Kishori (164 ITR 376) that fee is a charge for a special service rendered to individuals or a class by some governmental agency. A fee is a sort of return or consideration for services rendered, though it may not be based upon expenses or costs incurred by Government. At present as per NN30/2012, service tax on reverse charge shall be payable by service recipient’s only if support service is provided by government. This means at present if at all service tax is levied on annual processing fee, it shall be collected from the state government and not dealer. However  NN 30/2012 is most likely to be amended to be aligned with amended provisions of S.66D(a) and then service tax liability might fall back on dealers. Other services that might get covered are MCA filing fee, motor vehicle registration fee, other fee for obtaining licenses, registration, permissions etc.