TMI BlogService Tax –- Joint Venture – reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise and Service Tax (All), Director General (Service Tax), Director General (Audit), Director General (Central Excise Intelligence), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All). Madam/Sir, Subject: Service Tax - Joint Venture reg. Certain doubts have been raised regarding the levy of service tax on taxable services pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be, and a member thereof shall be treated as distinct persons . In accordance with the above explanation, JV and the members of the JV are treated as distinct persons and therefore, taxable services provided for consideration, by the JV to its members or vice versa and between the members of the JV are taxable. 3. In the context of a JV project, cash calls are capital contributio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be in the nature of advance payments made by members towards taxable services to be received from the JV. For instance, JV which receives the cash call from its members may in return agree to do something of direct benefit either to the member or on the behest of a member to a third party, such as granting of right, reserving production capacity or providing an option on future supplies. 4.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JV being an unincorporated temporary association constituted for the limited purpose of carrying out a specified project within a time frame, a comprehensive examination of the various JV agreements (at times, there could be number of inter se agreements between members of the JV) holds the key to understanding of the taxation of transactions involving taxable services between the JV and its memb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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