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Service Tax - Highlights / Catch Notes

Home Highlights September 2017 Year 2017 This

Sharing of expenses - BAS - promotion of business of group ...

Service Tax

September 20, 2017

Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

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  1. Sharing of expenditure with group companies - demand under the BAS category prima facie not sustainable - assesse being paying service tax as BSS w.e.f. 1.4.2006, stay granted - AT

  2. Adjustment of arm's length price - There is no reason to change the head of expenses from advertisement expenditure to business promotion expenditure - AT

  3. Addition on account of Business Promotion Expenses - personal element in the business promotion expenses to the extent of 10% of the total expenses cannot be ruled out.

  4. Sales promotion expenses - expenditure with respect to the gold chains being distributed - expenditure allowed - AT

  5. Foreign travelling expenses incurred for purchase of Machinery from outside India cannot be treated as Capital Expenditure rather treated as Revenue Expenditure only for...

  6. Sharing of manpower between group companies - reimbursement of the expenditure - Levy of service tax - Such an activity does not, prima facie, come under the purview of...

  7. Activity of deputation of employees to group companies - No Marketing network services provided to group companies - recovery of expenses in return do not comes under...

  8. Expenditure incurred by the assessee company on payment of premium for purchase of its own shares from warring group of shareholders - expenditure is revenue in nature -...

  9. Reverse Charge Mechanism - Business Auxiliary Services - Share of profit in the joint ownership of business - revenue failed to prove that assessee was engaged in providing BAS.

  10. Expenses of Group Companies - Can a deduction be allowed for the expenditure incurred by appellant to meet the liability of the another company and for the debts written...

 

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