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2024 (2) TMI 16 - AT - Service TaxLevy of Service Tax - TDS portion of the foreign currency remittance made by the Appellant for the services received - HELD THAT:- The appellant has imported services from the foreign service provider and paid the consideration as indicated in the invoice. No TDS has been deducted by them from the invoice value. The TDS paid by them was to comply with the provisions of the Income Tax Act - the contention of the Appellant is agreed upon that the amount would not be part of the consideration for the taxable services received by them as per Section 67(1)(a) of the Finance Act, 1994. Accordingly, service tax is not payable on the TDS paid by the appellant on behalf of the foreign service provider. The issue is no longer ‘res integra’ as the same issue has already been decided by the Tribunal in the case of ADANI BUNKERING PVT. LTD VERSUS COMMISSIONER OF C.E., AHMEDABAD-II [2024 (1) TMI 984 - CESTAT AHMEDABAD] wherein the Tribunal has held that TDS deposited to the Income Tax Department in relation to the payment made to the foreign service provider over and above the invoice value of the services, is not liable to service tax. The appellant is not liable to pay service tax on the TDS paid by them on behalf of the foreign service provider - the demand confirmed in the impugned order is not sustainable and the same is set aside - appeal allowed.
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