Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
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Reverse charge mechanism on commission paid to foreign commission agents does not attract service tax liability. Documentary evidence shows no direct payment made to commission agents by appellant, rather deduction from total invoice value raised on foreign buyer constitutes trade discount. Absence of contractual relationship between appellant and foreign service provider, coupled with lack of direct transaction, precludes service tax demand on commission shown in buyer's invoice. Tribunal relied on precedents in Laxmi Exports and Aquamarine Exports cases, where commission deducted was held as trade discount not subjected to service tax. Issue settled in favor of assessee, demand of service tax on commission deducted in sale invoice to foreign buyer not chargeable. Impugned order set aside, appeal allowed.
Reverse charge mechanism on commission paid to foreign commission agents does not attract service tax liability. Documentary evidence shows no direct payment made to commission agents by appellant, rather deduction from total invoice value raised on foreign buyer constitutes trade discount. Absence of contractual relationship between appellant and foreign service provider, coupled with lack of direct transaction, precludes service tax demand on commission shown in buyer's invoice. Tribunal relied on precedents in Laxmi Exports and Aquamarine Exports cases, where commission deducted was held as trade discount not subjected to service tax. Issue settled in favor of assessee, demand of service tax on commission deducted in sale invoice to foreign buyer not chargeable. Impugned order set aside, appeal allowed.
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