Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 545 - AT - Service TaxValuation - amount reimbursed towards fee payable to broadcast personnel - Department was of the view that service tax was required to be paid on the full amount received by the appellant from M/s. Prasar Bharti - case of appellant is that appellant was only acting as an agent of M/s. Prasar Bharti and have received reimbursement of the broadcast personnel fees which in turn has been paid by the appellant to the personnel as a “pure agent” - Held that: - section 67 specifies that wherever the provision of service is for a consideration, the taxable value would be a gross amount charged by the service provider for such service. The Service Tax (Determination of Value) Rules 2006 provides for exclusion from the taxable value, amount received in the capacity of “pure agent”. To decide whether the appellant was acting as a pure agent, we need to refer to rule 5 (2) of the Service Tax Valuation Rules 2006. In the said rule, expenditure incurred by the service provider as a pure agent can be excluded from the value of taxable service subject to the condition that all the eight conditions specified there are satisfied - The adjudicating authority has elaborately discussed these criteria and held that appellant has not fulfilled the same - the appellant cannot be treated as a pure agent as defined in the rules. Consequently, the appellant is required to discharge service tax on the full amount received from M/s. Prasar Bharti i.e. including both the commission at the rate of 10% as well as broadcast fees. Reliance paced in the case of Neelav Jaiswal & Brothers Versus CCE, Allahabad [2013 (8) TMI 147 - CESTAT NEW DELHI], where it was held that unless all the conditions pure agent are satisfied, the appellant will not be entitled to any exclusion from the taxable service for amounts received towards salary, provident fund, etc. Demand upheld - Appeal dismissed - decided against appellant.
|