Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 1232 - AT - Service TaxLevy of Service Tax - Clearing and Forwarding Agency service - reimbursement amount received from the principal - Rule 5 of the Service Tax (Determination of the Value) Rules, 2006 - HELD THAT:- The consideration of services rendered by the appellant is contained in Clause 26 in the said agreement. The service charges/remuneration was received by the appellant for inward and outward handling, in accordance with the rates specified in the said agreement. Except the amount agreed upon towards service charges from time to time, the appellant was not entitled to any remuneration, reimbursement or any other monetary benefit for any service provided under the said agreement - It is an undisputed fact on record that over and above the amount agreed upon towards service charges, the appellant did not obtain any monitory benefit for providing any taxable service and that the amount of reimbursement towards the expenses received by the appellant towards different charges was not in connection with provision of the service under the taxable category of C&F Agent service. Thus, such reimbursable amount should not be included in the gross value for the payment of service tax. It is also an admitted fact on record that the principal M/s. HUL has arranged for the transportation of goods and also paid the charges thereon to the transporter. As a corporate entity, the said principal has paid service tax under reverse charge mechanism in terms of Rule 2 (1) (d) of the Service Tax Rules, 1994 - In this context, the CBEC has clarified that if service tax due on transportation of a consignment has been paid or is payable by a person liable to pay service tax (recipient of service), then service tax should not be charged for the same amount from any other person, to avoid double taxation. Appeal allowed - decided in favor of appellant.
|