Meaning of service

‘Service’ has been defined in clause (44) of the new section 65B and means –

• any activity

• for consideration

• carried out by a person for another

And includes a declared service.

The said definition further provides that ‘Service’ does not include –

  1. any activity that constitutes only a transfer in title of
    1. goods or
    2. immovable property by way of sale, gift or in any other manner
  2. a transfer, delivery or supply of goods which is deemed to be a sale of goods within the meaning of clause (29A) of article 366 of the Constitution
  3. a transaction only in money or auction able claim
  4. A service provided by an employee to an employer in the course of the employment.
  5. fees payable to a court or a tribunal set up under a law for the time being in force


The word activity would include an act done, a work done, a deed done, an operation carried out, execution of an act, provision of a facility etc.


As per section 67 of the Act “consideration” includes any amount that is payable for the taxable services provided or to be provided.

In simple terms, ‘consideration’ means everything received or recoverable in return of a provision of service which includes monetary payment and any consideration of non- monetary nature.

By a person for another

This phrase signifies that services provided by a person to self are outside the ambit of taxable service.


An establishment of a person located in taxable territory and another establishment of such person located in non-taxable territory are treated as establishments of distinct persons.

An unincorporated association or body of persons and members thereof are also treated as distinct persons.

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