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Service tax - Group Relief

Q: When is there no exemption on services provided to companies outside the group?

No exemption applies if services are provided to companies outside the group and the value of services is >5% of the total services provided by the company within 12 months .

Q: What is the meaning of 'within the same group' regarding company control?

'Within the same group' means one company controls another if: Directly Indirectly through subsidiaries Together directly or indirectly from subsidiaries >50% share capital 20%-50% share capital with control over board appointments( control majority directors )

Q: When is group relief still applicable if services are provided outside the group?

Group relief remains applicable if the value of services provided outside the group is ≤5% of the total value of services provided by the company within 12 months.

4 important questions on Service tax - Group Relief

What services are eligible for group relief and not subject to service tax?

Group G services

When is there no exemption on services provided to companies outside the group?

No exemption applies if services are provided to companies outside the group and the value of services is >5% of the total services provided by the company within 12 months.

What is the meaning of "within the same group" regarding company control?

"Within the same group" means one company controls another if:

Directly
Indirectly through subsidiaries
Together directly or indirectly from subsidiaries
- >50% share capital
- 20%-50% share capital with control over board appointments(control majority directors)

When is group relief still applicable if services are provided outside the group?

Group relief remains applicable if the value of services provided outside the group is ≤5% of the total value of services provided by the company within 12 months.

The question on the page originate from the summary of the following study material:

ATX

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