Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
The tribunal held that service tax under reverse charge mechanism is not leviable on commission paid to directors treated as salary in the company's books of accounts and subjected to TDS deduction under Income Tax Act. As per Section 65B(44)(b) of Finance Act, 1994, services by an employee to employer in the course of employment do not constitute 'service'. The directors are employees of the company and the commission paid is for services rendered in their employment capacity, not liable to service tax. The treatment of commission as salary in books, TDS deduction, and CBEC Circular No. 115/9/2009-ST dated 31.07.2009 further support the position that such commission is not taxable as Business Auxiliary Service. Consequently, the demand for service tax was set aside by the appellate tribunal.
The tribunal held that service tax under reverse charge mechanism is not leviable on commission paid to directors treated as salary in the company's books of accounts and subjected to TDS deduction under Income Tax Act. As per Section 65B(44)(b) of Finance Act, 1994, services by an employee to employer in the course of employment do not constitute 'service'. The directors are employees of the company and the commission paid is for services rendered in their employment capacity, not liable to service tax. The treatment of commission as salary in books, TDS deduction, and CBEC Circular No. 115/9/2009-ST dated 31.07.2009 further support the position that such commission is not taxable as Business Auxiliary Service. Consequently, the demand for service tax was set aside by the appellate tribunal.
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