Home Case Index All Cases Service Tax Service Tax + Commissioner Service Tax - 2018 (10) TMI Commissioner This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 642 - Commissioner - Service TaxValuation - includibility - amount collected as Interest free Maintenance Security as a deposit - Section 67 of FA - Whether service tax is leviable on the amount collected as Interest free Maintenance Security (IFMS) collected as a deposit from the flat owners of a housing society? Held that:- The reference to section 67 for making IFMS as part of the gross amount chargeable to tax for provision of the said service in the impugned order is not tenable as only advances for the services and actual receipts for provision of the said service can be legible to tax which in this case being the advance deposit of first 18 months and the monthly charges are already covered by service tax and the same was duly paid. The deposit (IFMS) could not be correlated to payment or advance for service. The amount collected as deposit was merely a security and not an advance towards any service charge and hence not includible in value for service tax. Further, the appellants had retained this amount till the stage of transfer of maintenance responsibility to RWA. The repair and maintenance was the responsibility of developer till that stage - The issue of taxability of maintenance charges in such cases was decided by Honourable Tribunal in the case of Kumar Behary Rathi vs. CCE Pune [2013 (12) TMI 269 - CESTAT MUMBAI], where it was held that Such maintenance of the structure is not rendering a taxable service as per s. 65 (64) of the Finance Act, 1994. Demand set aside - appeal allowed - decided in favor of appellant.
|