Working capital adjustment, comparable selection and trade receivables interest were revisited in transfer pricing, with key additions deleted and rem...
Page of 4809
Press 'Enter' after typing page number.
2061 to 2080 of 96177 Results
❮
❯
❯❯
0 / 200
Expand Note
Add to Folder
No Folders have been created
+
Are you sure you want to delete "My most important" ?
The appellant provides warranty services to customers who purchased machines from its parent company, receiving commission on sales. The appellant made provisions in its books for expenses incurred in providing warranty services, termed as "warranty income." The department construed this "warranty income" as consideration received for repair and maintenance services during the warranty period and demanded service tax. However, the appellant had already discharged service tax on the commission received and did not receive any separate consideration for warranty services. The provisions made were as per Accounting Standard 29 to meet future expenses for fulfilling warranty obligations, not consideration received. The demand was raised solely based on book entries, assuming such figures as consideration, which is impermissible. The Tribunal held that since no separate consideration was received for warranty services, the demand cannot sustain and set aside the impugned order, allowing the appeal.
The appellant provides warranty services to customers who purchased machines from its parent company, receiving commission on sales. The appellant made provisions in its books for expenses incurred in providing warranty services, termed as "warranty income." The department construed this "warranty income" as consideration received for repair and maintenance services during the warranty period and demanded service tax. However, the appellant had already discharged service tax on the commission received and did not receive any separate consideration for warranty services. The provisions made were as per Accounting Standard 29 to meet future expenses for fulfilling warranty obligations, not consideration received. The demand was raised solely based on book entries, assuming such figures as consideration, which is impermissible. The Tribunal held that since no separate consideration was received for warranty services, the demand cannot sustain and set aside the impugned order, allowing the appeal.
Note: It is a system-generated summary and is for quick reference only.