TIOL-DDT 1901 · Monday, 16 July 2012 · story 2 of 6

Service Tax on Beggars?

THE TRU PowerPoint Presentation says,

++ A beggar playing music on road not taxable even if soliciting money

++ But taxable if same beggar performs at a function for consideration

When the same beggar performs at a function for consideration, is he still a beggar? And why is it not Taxable when he sings on the road while it becomes taxable if he sings in a hall? (Assuming that many beggars in India earn more than Rs. Ten Lakhs a year)

Remember the old-time song Tum Ek paisa doge Woh Dus Lakh dega. (You give me a paisa; HE will give you Ten Lakhs). Is there a service in this case and the promise of a huge consideration?

The TRU Power Point says,

Consideration may actually be payable at a later point of time but linkage should be immediate.