Transfer-pricing comparability permits fresh objections and filters where software service comparables are functionally unsuitable for arm's-length pr...
Territorial rendering requirement excludes China-based management and consultancy services from fees for technical services under the India-China DTAA...
FEMA borrowing restrictions bind charitable trusts, and civil penalties apply without proving intent for delayed repayment of non-resident rupee loans...
CESTAT ruled that Delayed Payment Charges (DPC) received by the appellant stockbroker from clients are not includible in the taxable value for service tax purposes. The Tribunal determined that DPCs constitute penal charges for delayed payments rather than consideration for providing a separate service. Applying principles established in Bhayana Builders and other precedents, CESTAT emphasized that "consideration" under Section 67 of the Finance Act must flow from the service recipient to the service provider as payment for services rendered. The Tribunal noted that Circular 137/25/2011 specifically clarifies that DPCs are not chargeable to service tax as they represent penalties rather than service fees. The impugned order was set aside and the appeal allowed.
CESTAT ruled that Delayed Payment Charges (DPC) received by the appellant stockbroker from clients are not includible in the taxable value for service tax purposes. The Tribunal determined that DPCs constitute penal charges for delayed payments rather than consideration for providing a separate service. Applying principles established in Bhayana Builders and other precedents, CESTAT emphasized that "consideration" under Section 67 of the Finance Act must flow from the service recipient to the service provider as payment for services rendered. The Tribunal noted that Circular 137/25/2011 specifically clarifies that DPCs are not chargeable to service tax as they represent penalties rather than service fees. The impugned order was set aside and the appeal allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4891 
