TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellant liable for Service Tax on grants linked to training programs, but not on Healthy India Website upgrade grants.</h1> <h3>M/s Public Health Foundation India Versus CST Delhi</h3> The Tribunal confirmed the appellant's liability to pay Service Tax on grants received from MSD for providing training programs to doctors due to a direct ... Commercial Training or Coaching Services - grants received from MSD towards provision of training to doctors - whether PHFI is liable to pay Service Tax on the amount received from MSD treating the same as part of consideration for providing commercial training or coaching? - Held that: - the amount received as grant from MSD is specifically towards defraying the cost of running the training programme for doctors - the link between the amount and the training is direct and hence the amount received from MSD, even though a third party in the transaction between the service provider and service receiver, the same is to be considered as part of the consideration for the service - Such a view also finds support from Section 2(d) of the Indian Act, 1872 which defines the term “consideration” - Service Tax is liable to be paid under the above category by including the amounts received as grant from MSD - demand upheld. Levy of service tax - Management, Maintenance and Repair service - grants received from the Ministry of Health. DHFI carried-out the activity of re-launch/upgradation of the Healthy India Website for the Ministry of Health - CBEC circular dated 09.07.2001 - Held that: - PHFI has received “grants-in-aid” from the Ministry of Health - there is no service being rendered by PHFI to Ministry in lieu of grant - there is no no service provider-service recipient relationship between the parties - no Service Tax is to be paid on the amount received by PHFI from the Ministry of Health. Appeal allowed in part. Issues:1. Whether the appellant is liable to pay Service Tax on the amount received from MSD as part of a grant for providing training programs.2. Whether the appellant is liable to pay Service Tax on the grants received from the Ministry of Health for the upgradation of the Healthy India Website.Analysis:1. The appellant, a Not-for-Profit Society, provided training to doctors in Diabetes Management in India and received grants from MSD. The dispute was whether the grant amount should be subject to Service Tax. The appellant argued that the grant was not linked to the training service provided and cited CBEC circulars and case laws. The Tribunal noted that the grant was specifically for defraying training expenses, and as per Section 67 of the Finance Act, 'consideration' includes any amount payable for taxable services. The Tribunal found a direct link between the grant and the training service, upholding the Service Tax liability on the grant amount from MSD.2. The appellant also received grants from the Ministry of Health for the upgradation of the Healthy India Website. The appellant contended that no service was rendered to the Ministry in exchange for the grant. Citing a CBEC circular and case laws, the Tribunal agreed that no service provider-service recipient relationship existed in this case. Therefore, the Tribunal held that no Service Tax was payable on the grants received from the Ministry of Health.In conclusion, the Tribunal confirmed the Service Tax liability on the grants received from MSD for providing training to doctors but set aside the demand for Service Tax on the grants received from the Ministry of Health. The appeal was partially allowed, with the judgment pronounced on 12.04.2018.
TaxTMI 
TaxTMI 
