Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 656 - AT - Service TaxReceipt of incentive and commission from the Maruti Udyog Limited while providing providing “authorised service station” and “business auxiliary service” - commission /remuneration received by the appellant from the financial companies. - Held that:- It is seen that the records do not indicate that the claim of the appellant that they are mere provider of “table space” and that these receipts are in the nature of consideration for such allocation can be controverted. Therefore, the tax levied on such remuneration is liable to be set aside. The commission paid through the appellant to their executives is, admittedly, remuneration for the efforts made by the employees of the appellant to promote the products of the finance companies. Admittedly, they are employees of the appellant and, thereby, not free agents. Their promotional efforts cannot be delinked from that of the appellant; the fact that payments are made over to the appellant is sufficient to deduce so. That the appellant chooses not to retain any of the commission and instead passes them on to the executives is an internal policy of the appellant that need not concern the tax authority. Processing fees are the consideration for handling the loan applications and it is, undoubtedly, incidental to promotion of the service that is offered by the finance companies. Decided partly in favor of assessee.
|