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2024 (2) TMI 15 - AT - Service TaxValuation of service tax - inclusion of TDS paid by the appellants to the Income Tax Department, in terms of Section 195A of the Income Tax Act, should in the gross amount for the purpose of calculation of service tax payable by the appellants in terms of Rule 2 (1)(d)(iv) of Service Tax Rules, 1994 read with Section 66A of Finance Act, 1994 - time limitation - HELD THAT:- The Tribunal has referred to the judgments of the Tribunal in the case of Indian Additives Ltd. [2018 (6) TMI 523 - CESTAT CHENNAI] and Centre for High Technology [2018 (8) TMI 243 - CESTAT NEW DELHI] and concludes that the amount of TDS paid is not includable in the gross value for the purpose of payment of service tax - It is further found Commissioner (Appeals) in the Order dated 20.09.2019, for the further period, holds that the agreement provides for payment of TDS by the appellant in addition to the consideration paid to the overseas service providers and they have not deducted the same from the payment made to the overseas service providers. There are no reason to come to a conclusion that the facts of the case are different as submitted by the learned Authorized Representative for the Department. Moreover, we find that the impugned show-cause notice and the Order do not base their arguments on the conditions of the contract; they hold that TDS per se is includable in the gross value for calculation of service tax - the impugned show-cause notice and the Order do not base their arguments on the conditions of the contract; they hold that TDS per se is includable in the gross value for calculation of service tax. In view of the judgments discussed or cited above, principally, the same is not tenable. Extended period of limitation - HELD THAT:- There is nothing in the show-cause notice and the impugned order to prove any of the ingredients like suppression, mis-statement etc. with intent to evade payment of service tax; therefore, no case is made for invocation of extended period. The appeal is allowed both on merits and limitation.
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