According to Section 65 (105) (zzzr), any service provided or to be provided; to any person, by any other person, in relation to auction of property, movable or immovable, tangible or intangible, in any manner, but does not include auction of property under the directions or orders of a court of law or auction by the Government.
Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, “auction by the Government” means the Government property being auctioned by any person acting as auctioneer;
According to Section 65 (7a), “auction of property” includes calling the auction or providing a facility, advertising or illustrating services, pre-auction price estimates, short-term storage services, repair or restoration services in relation to auction of property.
A seller of property normally enters into an agreement with an auctioneer to conduct the auction for a consideration. The auctioneer provides services like advertising, repairing, storage etc. of the property under auction. The auctioneer is liable to pay service tax
(a) Small service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of Rs. 10,00,000/- (Service Tax Notification No. 8/2008-ST dated 01.03.2008)
(b) Services provided to the United Nations or International Organisations
(c) Services provided to Special Economic Zones (SEZ) units (including unit under construction) and SEZ developers
(d) Services which are exported as per ‘Export of Services’ Rules
(e) Services provided for official or personal use of foreign diplomatic missions and family members of diplomatic missions.
(f) Services provided by Reserve Bank of India
(g) Out of total value of service provided proportionate value of goods and material provided by the Service Provider