Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
Nominee director protection shields independent financial-institution appointees from criminal liability where they lack involvement in deposit defaul...
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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.
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