TMI Blog2016 (3) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoice/bill but there is nothing on record that indicates that the appellant had recovered that amount of Income Tax paid by them on such amount paid to the service provider from the outside India and any other material to hold that this amount is paid is consideration for services received from service provider. As per Section 67 with Rule 7 of Service Tax Valuation Rules, the Service Tax liability needs to be discharged on amounts which have been billed by the service provider. Therefore, appellant is not liable to pay service tax. - Decided in favour of appellant with consequential relief - Appeal No. ST/322/12-Mum - Final Order No. A/86339/2016-WZB/STB - Dated:- 24-2-2016 - M V Ravindran, Member (J) And C J Mathew, Member (T) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty on the actual amount paid by them to such consultant. He would then take us through the provision of Section 67 of the Finance Act, 1994 and submit that the said Section contemplates discharge of Service Tax liability on the gross amount charged by the service provider. He would submit that the architect has charged the gross amount that indicated in the agreement. Subsequently, learned Counsel would take us through the provision of Service Tax (Determination of Value) Rules, 2006, as per Rule 7 during the relevant period, the provision were very clear has to actual consultant charges need to be taxed. For this purpose, he relied upon the judgment of the Tribunal in the case of Commissioner of Central Excise, Raigad Vs. Jawaharlal Nehru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is chargeable on any taxable service with reference to its value, then such value shall,- (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration; iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67(i) very clear mandates for discharging the Service Tax liability amount which is charged by the service provider is the amount. 8. Service Tax Valuation Rules, 2006 before amendment by Notification No. 24/2012-ST, specifically Rule 7 needs to be read to arrive at the correct value of taxable service provided from outside India relevant Rule is reproduced:- 7. Actual consideration to be the value of taxable service provided from outside India (1) The value of taxable service received under the provisions of Section 66A, shall be such amount as is equal to the actual consideration charged for the services provided or to he provided, (2) Notwithstanding anything contained in sub-rule (1), the value of taxable services s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
