Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 487 - AT - Service TaxDemand of service tax - Valuation - Inclusion of TDS portion of the royalty paid to the foreign company - foreign company does not have any establishment in India - period April 2007 to March 2008 - HELD THAT:- The issue stands decided by the order of the Tribunal in the appellant’s own case for a different period in [2018 (6) TMI 523 - CESTAT CHENNAI]. The Tribunal had relied upon the decision in the case of Magarpatta Township Development and Construction Co. Ltd. [2016 (3) TMI 811 - CESTAT MUMBAI] where it was held that There is nothing on record that indicates that the appellant had recovered that amount of Income Tax paid by them on such amount paid to the service provider from the outside India and any other material to hold that this amount is paid as consideration for services received from service provider. On the plain reading of Section 67 with Rule 7 of Service Tax Valuation Rules, in this case in hand, Service Tax liability needs to be discharged on amounts which have been billed by the service provider. The levy of service tax on the TDS portion borne by the appellant cannot sustain and requires to be set aside - Appeal allowed - decided in favor of appellant.
|