TMI Blog2021 (10) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... covered 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 as consideration for services received from service provider. On the plain reading of Section 67 with Rule 7 of Service Tax Valuation Rules, in this case in hand, Service Tax liability needs to be discharged on amounts which have been billed by the service provider. The levy of service tax on the TDS portion borne by the appellant cannot sustain and requires to be set aside - Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.214 of 2012 - - - Dated:- 24-9-2021 - Hon ble Ms. SulekhaBeevi C.S., Member (Judicial) And Hon ble Shri P. Anjani Kumar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he running royalty shall be the net of Indian income tax which shall be borne by the appellant. The demand of service tax on the TDS amount is incorrect as the TDS is borne by appellant. She relied upon the decision of the Tribunal in the case of Magarpatta Township Development and Construction Co. Ltd. Vs. CCE, Pune 2016 (43) STR 132 as well as the decision of this Bench in the appellant s own case vide Final Order No. 40878/2018 dated 2.3.2018. 3. The learned AR Shri Arul C Durairaj supported the findings in the impugned order. 4. Heard both sides. 5. The issue to be decided is whether the levy of service tax on the TDS portion borne by the appellant is legal and proper. The issue stands decided by the order of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, we find that appellant had discharged the consideration as raised in the said invoice/bill. 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 as consideration for services received from service provider. 9. In our considered view, the plain reading of Section 67 with Rule 7 of Service Tax Valuation Rules, in this case in hand, Service Tax liability needs to be discharged on amounts which have been billed by the service provider. 6. From the above, we hold that the levy of service tax on the TDS portion borne by the appellant cannot sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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