Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1244 - CESTAT HYDERABADRecovery of differential Service Tax - amounts paid by NHAI as TDS - time limitation - Held that:- There is no dispute as to the fact that the agreement entered by the appellant with NHAI at clause 1.10.2 [under taxes and duties clauses] wherein the liability to discharge/ deduct the income tax from the consultant, sub-consultant and personnel was on the part of NHAI which they have complied with and it is also undisputed that appellant had received the amount of consideration of the contract and discharged the service tax liability on such an amount. Provisions of Section 195A of Income Tax Act, are very clear inasmuch that where the tax chargeable on the income of payee is borne by the payer, then for the purpose of TDS such income shall be increased to such an amount as would after TDS be equal to the net amount equal to payee - the amount of TDS either deducted from the payee’s account or paid on behalf of the payee is considered as income by the Income Tax Act, 1961 and in the case in hand, it is very clear from the records that the amount of consideration on which service tax demand has been raised was reflected and captured from the accounts on verification of the records of the appellant. Undisputedly, the TDS deducted by NHAI and paid on behalf of the appellant is the amount received for the services rendered as amount of TDS which has been paid by NHAI gets reflected as income in the books of the appellant. It is undisputed that appellant has no other income other than amounts received as consideration from NHAI. If that be so, the amount of tax deducted and paid is shown as income and is directly related to the contract entered by the appellant with NHAI, it can be said that the amount of TDS is charged by the appellant to NHAI for services rendered and is definitely liable to the service tax. TDS amount paid by NHAI into the Government Treasury on behalf of the appellant herein was an amount paid towards consideration for the services rendered - impugned order upheld. Time limitation - Held that:- The appellant has also not been able to make out a case on limitation for simple reason that despite showing TDS amount as income in his balance sheet, did not indicate the same or reconcile figures with the service tax returns filed by them and revenue had to come out with the figures on verification of the records itself indicates that there was suppression of facts - the point raised on limitation would also not carry the case of the appellant any further. Appeal dismissed - decided against appellant.
|