Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
The case involved a dispute regarding the applicability of service tax on corporate guarantee fees u/s 65(12)(a)(ix) of the Finance Act. The tribunal held that providing a corporate guarantee does not constitute Banking and Other Financial Services (BOFS) and is not related to lending activity. Citing precedents, the tribunal concluded that the corporate guarantee does not fall within the ambit of lending activity. The demand for service tax u/s reverse charge mechanism prior to 01.07.2012 was set aside as corporate guarantee does not qualify as BOFS. For the period post 01.07.2012, since the appellant had already paid the tax liability, it cannot be demanded again. The tribunal also found that the invocation of the extended period was unjustified as there was no evidence of mala fide intention to evade payment. Consequently, the demand for the period from 2009-2010 to 1st July 2012 was set aside, and the appeal was allowed.
The case involved a dispute regarding the applicability of service tax on corporate guarantee fees u/s 65(12)(a)(ix) of the Finance Act. The tribunal held that providing a corporate guarantee does not constitute Banking and Other Financial Services (BOFS) and is not related to lending activity. Citing precedents, the tribunal concluded that the corporate guarantee does not fall within the ambit of lending activity. The demand for service tax u/s reverse charge mechanism prior to 01.07.2012 was set aside as corporate guarantee does not qualify as BOFS. For the period post 01.07.2012, since the appellant had already paid the tax liability, it cannot be demanded again. The tribunal also found that the invocation of the extended period was unjustified as there was no evidence of mala fide intention to evade payment. Consequently, the demand for the period from 2009-2010 to 1st July 2012 was set aside, and the appeal was allowed.
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