TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether airport taxes and passenger service fee collected in connection with international air passenger transport are includible in the taxable value for levy of service tax.
Analysis: The dispute concerned valuation under the service tax provision applicable to transportation of passengers embarking in India for an international journey by air. The Tribunal accepted the settled view that passenger service fee and airport taxes, having been collected from passengers and deposited with the airport authority or licensee, do not form part of the consideration for the taxable service. The contrary view based on Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 was not accepted, as that rule had been declared ultra vires and could not sustain inclusion of such charges in the assessable value.
Conclusion: Airport taxes and passenger service fee are not includible in the taxable value, and the service tax demand based on their inclusion cannot be sustained.
Ratio Decidendi: Amounts collected merely as airport taxes or passenger service fee, when held for deposit with the airport authority or licensee, are excluded from the taxable value for service tax and cannot be added through a valuation rule that is ultra vires.
TaxTMI 
TaxTMI 
