TMI Blog2011 (8) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... some amount to the loan seekers as an incentive for taking the loan through them. This amount is hereinafter referred to as subvention . While paying service tax for amounts received as commission from the bank, the appellant deducted the amounts of subventions from the amount received from the bank and paid service tax only on the remaining portion of the commission. - Held that:- the amount paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seekers as an incentive for taking the loan through them. This amount is hereinafter referred to as subvention . While paying service tax for amounts received as commission from the bank, the appellant deducted the amounts of subventions from the amount received from the bank and paid service tax only on the remaining portion of the commission. The Revenue made out a case that they should have pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in their books of account. The contention of the appellant is that this procedure was followed because the banks were under obligation to deduct TDS (Tax Deducted at Source) under Income-tax Act and they were not willing to issue TDS certificates for different individuals and that is the only reason why the amounts were reflected in their books of account. It is the contention that they should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame of the appellant for deduction of income tax on the full amount paid to the appellant. This means that while filing income-tax return, he is taking the credit for entire TDS including the amount deducted on account of payments directly made to the customers. Therefore, this is an arrangement where the appellant decided to get the benefit of deduction of TDS for the whole amount for income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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