Definition of service

The definition of service is defined under the section 65B(44) as 

Service 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 –

• any activity that constitutes only 
• a transfer in title of  goods or immovable property by way of sale, gift or in any other manner 
• such 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
• a transaction only in  money or actionable claim
• a service provided by an employee to an employer in the course of the employment.
• fees payable to a court or a tribunal set up under a law for the time being in force

Explanation 1 declares that the service definition does not applies to the following :

1. Functions performed by the Members of Parliament, Members of State Legislative, Members of Panchayats, Members of Municipalities and Members of other local authorities who receive any consideration in performing the functions of that office as such member 
2. the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or
3.  the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or State Governments or local authority and who is not deemed as an employee before the commencement of this section.

Explanation 2 specifies that for the purpose of this chapter transaction in money shall not include any activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination to another form, currency or denomination for which a separate consideration is charged

Explanation 3 specifies that for the purposes of this Chapter :

1.  an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons;
2.  an establishment of a person in the taxable territory and any of his other establishment in a non-taxable territory shall be treated as establishments of distinct persons.

Explanation 4 specifies that a person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an

establishment in that territory;