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2017 (4) TMI 1135 - AT - Service TaxValuation of taxable services - The Revenue contend that the appellant/assessee is collecting “other charges” and did not pay service tax on such charges - The claim made by the appellant/assessee is that these other charges are nothing but transaction charges paid to stock exchange and turnover fee, stamp duty etc. - Held that: - On the excess stamp duty charges collected and retained by the appellant/assessee it was recorded that the amount which is shown as reserve and surplus in the balance sheet cannot be considered as receipt on account of stamp duty and accordingly liable to be added in the gross value for service tax purposes. Short payment of service tax - banking and other financial services - The main dispute relates to the tax liability of the appellant/ assessee for receipts under “other charges” - Held that: - The contract note itself does not elaborate the nature of such other charges. The appellant/ assessee claims that the other charges covered the turnover charges, VSAT connectivity charges, stamp duty etc. Categorical documentary evidence to that effect is not on record. Further, we note that the claim of the appellant/assessee to have acted as “pure agent” can be considered only on fulfillment of the conditions mentioned in Rule 5 (2) of the Valuation Rules. The main requirement for exclusion of charges when the appellant/assessee is acting as a pure agent is the amount collected from client should be passed on actual basis to third party based on a clear prior understanding. There are various conditions under the said Rule 5 (2). Only on fulfillment of all these conditions any consideration received by appellant can be excluded considering transaction under the concept of “pure agent”. The evidences to that effect are not presently on record. Matter remanded to the Original Authority for a fresh decision - appeal allowed by way of remand.
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