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2013 (11) TMI 418 - AT - Income TaxTreatment of service tax collected – The assessee has collected service tax on fees received - Held that:- Following Chowringhee Sales Bureau (P) Ltd. vs CIT [1972 (10) TMI 4 - SUPREME Court] - Reimbursement of service tax cannot form part of the taxable income of the assessee - Fee for technical services is for the service rendered by the assessee - Service tax is not an expenditure incurred by the assessee - It is a statutory levy on the person who avail the service from the assessee - Benefit of section 28 to 44C would not be available to the assessee and the provisions of section 44D would apply – Decided in favour of assessee. Reimbursements towards car hire charges, international air tickets and equipments procurement – Held that:- Reimbursement of car hire charges, international air tickets and equipments procurement expenses would not be grossed to tax at the flat rate of 20% - The amount being reimbursement expenses earlier incurred by the assessee would not constitute assessee’s income by way of fees for technical services – Following ACIT vs Real Image Media Technologies (P) Ltd [2007 (12) TMI 263 - ITAT MADRAS-C] – Decided in favour of assessee. Exemption by the assessee u/s 10(6A) – Income-tax paid by service receiver on the remuneration paid to the assessee for providing consultancy - Held that:- The definition of ‘infrastructure facility’ can be imported in section 10(6A) - The assessee had furnished consultancy to Water Supply Project which is included in ‘Infrastructure project’ as per Explanation 2 to section 80IA(4) – Following Louis Berger International Inc. [2010 (6) TMI 524 - ITAT, HYDERABAD] - Development of infrastructure falls within the Industrial Policy of Government of India - Approval of the Government is not a pre-requirement for claiming exemption u/s 10(6A) – Fee received by the assessee towards technical services/ consultancy would fall under Article 12 and not under Article 7 - Decided in favour of assessee.
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