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2020 (1) TMI 638 - AT - Service TaxBusiness Support Service - Business Auxiliary Service - appellant was collecting service tax from the clients from day one and not depositing the amount so collected with the department - Benefit of N/N. 30/2012 dated 20/06/2012 - ‘out-of-pocket’ expenses and ‘reimbursable expenses’ - extended period of limitation - HELD THAT:- In this case, the appellant is collecting service tax from their clients from day one. Therefore, they are not entitled to the benefit of threshold exemption for the first year and service tax is rightly demanded from them. As they have charged service tax from their clients from day one, the amount of service tax collected from the clients is required to be deposited with the department. The appellant is charging service tax @ 25% of the service provided by them on ‘manpower recruitment and supply agency service’ and is entitled for the exemption N/N. 30/2012 dated 20/06/2012. Further, ‘out-of-pocket expenses’ are exempted in full as per the said notification. The said benefit has already been granted by the Learned Commissioner (Appeals) in the impugned order. The amount of service provided by the appellant shall be treated as cum-tax, if the same is shown in the balance sheet as whole of the invoice price. The adjudicating authority is directed to quantify the demand as directed herein above and if some amount is payable by the appellant the same shall be paid by the appellant within 30 days along with interest after quantification of the demand of the service tax by the adjudicating authority - Penalty u/s 78 upheld. Appeal allowed by way of remand.
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