TMI Blog2018 (12) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws our attention to Sec.67 of Finance Act, 1994 and after reading the section submits that the said section contemplates of collecting the service tax on the gross amount charged. It is her submission that appellant had raised invoices as per the running bills but the total amount charged was as per the agreement entered into and hence, demand of tax liability on appellant of the amount of TDS deducted and paid to the Government of India is incorrect. 4. Learned departmental representative, on the other hand, reiterates the findings of the lower authority. 5. Heard both sides and perused the records. 6. The issue involved in this case is whether revenue authorities were correct in demanding service tax on the amounts paid as TDS by NHAI on behalf of the appellant is correct or otherwise. 7. It is the finding of the first appellate authority and the adjudicating authority that the said amount is as per the agreement entered into by the appellant with NHAI and more specifically clause 1.10.2 of the said agreement indicates so, while it is the case of the appellant that they had discharged the service tax liability entirely on the amounts received as consideration for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t amount payable under such agreement or arrangement. 10. Further as per the provisions of Sec.198 of Income Tax Act, 1961, all sums deducted by payer from the amounts payable to payee is deemed to be the income of payee and the said section reads as under: Tax deducted is income received. 198. All sums deducted in accordance with the foregoing provisions of this chapter shall, for the purpose of computing the income of an assesee, be deemed to be income received. Provided that the sum being the tax paid, under sub-section (1A) of section 192 for the purpose of computing the income of an assesee, shall not be deemed to be income received. 11. It can be seen from the above reproduced sections that 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. This would indicate that appellant herein had shown the amount of TDS paid by NHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket. (b) [ * * * * ] (c) gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and [book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense account or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. 13. It can be seen from the above reproduced section 67 of the Finance Act that service tax shall be chargeable on the gross amount charged by the service provider for such services rendered. In the case in hand, the contention of the appellant that they had charged fully for the services rendered and the invoices raised also indicate the discharge of service tax liability on the total considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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