1. The persons mentioned under the heading for Taxable Person in Groups A, B1, B2, C, D, E, El, F, and G of this Schedule providing any taxable service under the heading for Taxable Service in each Group shall apply for a license provided that where two or more licenses are required, regulation4(1A) shall apply.
2. The person mentioned under the heading for Taxable Person in any Group shall charge service taxon any service provided by him under the heading for Taxable Service in such Group.
3. Where a company in a group of companies provides any taxable service mentioned in items (j), (k), (l), (m), (n), (o) or (r) of Group G to any company within a group of companies, such service shall not be a taxable service.
4. For the purpose of Para (3), two or more companies are eligible to be treated as companies within a group of companies if one company controls each of the other companies.
5. For the purpose of Para (4), a company shall be taken to control another company if:
(a) The first mentioned company holds:
(i) directly,
(ii) indirectly through subsidiaries, or
(iii) together directly or indirectly from subsidiaries, more than 50% of the issued share capital of the second mentioned company; or
(b) The first mentioned company holds:
(i) directly,
(ii) indirectly through subsidiaries, or
(iii) together directly or indirectly from subsidiaries, from 20% to 50% of the issued share capital of the second mentioned company and the first mentioned company has exercisable power to appoint or remove all or a majority of directors in the board of directors in the second mentioned company.
6. For the purpose of Para (5), shares shall be treated as not held if the shares are held:
(a) through nominees;
(b) in a fiduciary capacity; or
(c) by virtue of provisions of debenture holding, trust deeds for securing debentures or money
lending activities.
7. Where a company is controlled by virtue of Para 5(a) and Para 5(b) by two or more companies, such company (second mentioned company) shall be taken to be controlled by the first mentioned company which has the excisable power to appoint or remove all or a majority of directors in the board of directors in the second mentioned company.
8. Where a company provides any services mentioned in Para (3) to another person outside the group of companies, the same service provided to any company outside or within the group of companies shall be a taxable service.
9. Service tax shall be charged on taxable service mentioned in Para (8) on the day the person providing such service is required to be licensed by virtue of S. 8 of the Act.
