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2014 (3) TMI 339 - AT - Service TaxTaxability of Reimbursement of the expenses on advertisement and road show being organized recovered from the supplier of goods - Held that:- Respondent during the period of dispute had arranged advertisements and had organized road shows for promoting the sales of the cars being manufactured by M/s Hindustan Motors. This activity of the respondent is covered by the definition of Business Auxiliary Service as given in Section 65 (19) of the Finance Act, 1994. The debit notes issued by the respondent to M/s Hindustan Motors show the total charges for road shows/advertisements at various places and also mention the 50% share of M/s Hindustan Motors. Though the sales promotion activity being undertaken by the respondent may have benefited both respondent as well as M/s Hindustan Motors and satisfied the need of their respective business, to the extent the respondent have recovered expenses from M/s Hindustan Motors, they will be treated as having provided the sales promotion service to them and M/s Hindustan Motors is to be treated as their client and, hence, on the amount being charged by them from M/s Hindustan Motors, service tax would be attracted - there is no relationship of principal and client between the respondent and M/s Hindustan Motors is not correct - Decided in favour of Revenue.
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