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2017 (5) TMI 1142 - AT - Service TaxLiability of Service tax on TDS amount absorbed by the assessee on foreign remittance - reverse charge mechanism - case of appellant is that the service tax liability under Section 66A is already discharged on the amount of consideration paid by them to the service providers situated abroad - Department contended that appellant having discharged the Income Tax liability on the amount so paid, Service Tax liability arises on the Income Tax amount deducted as TDS and paid to Government of India - whether the appellant is required to discharge the service tax on an amount paid by them as TDS for the payment remitted to the service providers situated abroad or otherwise? - Held that: - It is not the case of Revenue that appellant has not paid the said amount and less paid to the service providers situated abroad. On a perusal of the records, we find that this plea of the appellant that the amount paid actually by them is not controverted by the adjudicating authority or by the first appellate authority. Identical issue came up before this Bench in the case of Magarpatta Township Development and Construction Co. Ltd. [2016 (3) TMI 811 - CESTAT MUMBAI], where it was held that the value which is to be considered for the discharge of service tax liability under reversal charge mechanism is equal to the actual consideration charged for the services provided or to be provided - In the case in hand, it is undisputed that appellant herein had only paid the actual consideration as per the agreement and nothing else - demand set aside - appeal allowed - decided in favor of appellant.
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