Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 919 - AT - Service TaxReverse charge mechanism - expenses incurred for maintenance of the offices abroad - Department entertained a view that the expenses incurred by the appellant for the maintenance of the offices abroad are liable to Service Tax on reverse charge basis - Head Office of the appellant in India as well as their Branch offices abroad. Held that:- Such payments have been made by the appellant to their own branch offices towards reimbursing the salaries of the employees working there, as well as the expenses incurred by the representative office - After carefully considering the provisions of law prior to and w.e.f. 01.07.2012, we note that there Is in essence no substantial change in the law. We are of the view that Section 65 B (44) read with the relevant Explanations are peremateria to the Section 66A (2) read with Explanation - Consequently, the finding of the Tribunal needs no modification even for the period after 01.07.2012. Hence, there is no justification to demand Service Tax on the amounts paid by the appellant to their branch office towards reimbursement of their expenses. The Commissioner has failed to discuss the issue in the light of the provisions, which have been included in the statute w.e.f. 01.07.2012. Appeal allowed - decided in favor of appellant.
|