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2017 (3) TMI 1220 - AT - Service TaxNature of Activity - provision of services or mere profit sharing arrangement - Activity of refilling the nitrogen has been sub contracted by the appellant to five contractors who are their sales agents - whether the activities of the appellant would fall within the ambit of business auxiliary service (BAS)? - Held that: - the agents of the appellant are approached by the customers who had purchased the only on reference and goodwill of the appellant. Sharing of consideration is also on transaction basis. The amount received by the appellants, though called as “profit sharing” is only a consideration from the agents for promoting the business at agreed terms and is therefore very much a business auxiliary service and the appellants will then become liable to discharge, and tax as applicable thereon - appeal dismissed - decided against appellant.
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