GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (9) TMI 324 - CESTAT MUMBAI

2016 (9) TMI 324 - CESTAT MUMBAI - 2017 (47) S.T.R. 53 (Tri. - Mumbai) - Denial of refund claim - Rule 5 of CCR, 2004 – input services – export of services – export turnover – should the turnover of branches of assesse located in South Africa and UK be treated as export turnover? - Section 65B(44) - services – POPOS rules, 2012 - Rule 2 (6A) - Export of Services – Held that: - As per explanation 3(b) of Section 65B(44), if a person is having two establishment one in taxable territory and other i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ranches of the assessee should be included in the ‘total turnover’ of the assesse - Held that: - Once it is held that branches’ turnover is not export being branches are distinct person, the same principle will apply for the purpose of total turnover of the assessee. Department cannot take contrary stand that in one hand the branches turnover is not export turnover and in other hand it is addable in total turnover of the assesse - branches turnover neither included in export turnover nor in the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e assessee located in South Africa and UK are also providing services to overseas clients. For these services invoices are raised by the branch offices of South Africa and UK and payment thereagainst were also received by the branches. A part amount was repatriated to India out of the proceed received by branches for the service provided by the South Africa and UK based branches. The assessee claimed refund under Rule 5 of CCR, 2004 in respect of service tax paid on the input service used for ex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

down by the original authority that the turnover of the services provided by the branches located in South Africa and UK is not part of the assessee s export turnover, however, interpreting the term total turnover held that the total turnover comes to ₹ 18,87,82,265/-(Rs. 17,73,46,004 towards the export turnover plus ₹ 1,14,36,261/- towards other services). Thus, the turnover of overseas branch offices were not considered in the total turnover. Accordingly, the Ld. Commissioner furt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ided by branches located in South Africa and UK is not considered as export of assessee. He submits that as per the explanation 4 to Section 65 B(44) of the Finance Act, 1994, the branch of the assessee is treated as having an establishment in that territory, the turnover of the branches has to be included in the assessee s turnover. He submits that the commissioner has overlooked the definition of Location of Service Provider in as much as Rule 2(4)(b)(iii), where services are provided from mor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ial consequently it was not required to be excluded from net export turnover. 3. On the other hand, Shri. V.K. Shastri, Ld. Asstt. Commissioner( A.R.) appearing on behalf of the Revenue, in respect of assessee s appeal, reiterates the findings of the impugned order. As regard the departmental appeal he submits that the Ld. Commissioner has wrongly reduced the value of services provided by the overseas branches of the assessee from total turnover for the reason that as regard total turnover a com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er of branches of assessee s located in South Africa and UK should be treated as export turnover of the assessee. (b) Whether the value of service provided by the overseas branches of the assessee should be included in the total turnover of the assessee. As regard the first issue, as per the fact of the present case the service was provided by the branches of the assessee located in South Africa and UK, the invoices for such services were raised by the respective branches to the foreign based se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ovisions of service, export of service etc. The relevant provisions are reproduced below: Section 65B - Interpretations [In this Chapter, unless the context otherwise requires,- (44) service means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include- (a) an activity which constitutes merely,- (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) such transfer, delivery or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities who receive any consideration in performing the functions of that office as such member; or (B) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (C) the duties performed by any person as a Chairperson or a Member or a Director in a body established by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including the activity carried out- (a) by a lottery distributor or selling agent on behalf of the State Government, in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner, in accordance with the provisions of the Lotteries (Regulation) Act, 1998; (b) by a foreman of chit fund for conducting or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

any territory shall be treated as having an establishment in that territory; Place of Provision of Services Rules, 2012 [ 28/2012-Service Tax dated 20.06.2012 ] In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST, dated the 3rd March, 2005 published in the Gazette of Ind .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s the following rules for the purpose of determination of the place of provision of services, namely:- 1. Short title, extent and commencement. - (1) These rules may be called the Place of Provision of Services Rules, 2012. (2) They shall come into force on 1st day of July, 2012. 2. Definitions.- In these rules, unless the context otherwise requires,- (h) "location of the service provider" means- (a) where the service provider has obtained a single registration, whether centralized or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with the provision of the service; and (iv) in the absence of such places, the usual place of residence of the service provider 3. Place of provision generally - The place of provision of a service shall be the location of the recipient of service: Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service. Rule 2 [6A Export of Services. - (1) The provision of any service .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3 of clause (44) of section 65B of the Act. (2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.] .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rovider is applicable only in taxable territory. If the service provider is located in non taxable territory, he will be treated as distinct person and this definition of location of Service provider will not apply. As per Rule 3 of Provision of Services Rules, 2012 place of service in normal course, shall be location of service recipient. In case location of service receiver is not available, the place of provision shall be the location of the provider of services. In the present case the provi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

12-7-2017 Goods and Services Tax

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version