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2017 (9) TMI 85 - AT - Service TaxBusiness Auxiliary Services - whether the appellant is liable to pay service tax on the turnover achieved by Tiems Telecom (P) Ltd. (a company) having separate Service Tax registration number? - Held that: - The said company was registered with the Service Tax Department and was carrying on business since 2004-05. The appellant started business w.e.f. 14-2-2008 - appellant is not liable to tax for such turnover achieved by the Pvt. Ltd. Company, M/s. Tiems Telecom Pvt. Ltd. on and before 14-2-2008. Whether the appellant is entitled to deduction for reimbursement of certain expenses from the principal under the provisions of Section 67 of the Finance Act? - Held that: - Section 67 of the Finance Act, 1994 provides that whatever is received by the service provider in his capacity as pure agent, such amounts shall not form part of the gross turnover liable to tax. I further find that proper findings have not been recorded as to the exact nature of receipts and as to deductibility - appeal allowed by way of remand to adjudicating authority. Penalties u/s 76 and 78 - Held that: - it is not a case of deliberate default, as the appellants have paid substantially the amount of taxes and there appears to be interpretational issue in regard to gross amount taxable - there was a dispute among the Directors of the Pvt. Ltd. company, which finally lead to the closure of the business in February, 2008 - penalties set aside. Appeal allowed in part and part matter on remand.
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