Political contribution deductions require genuine transactions; banking records and party registration alone cannot defeat evidence of accommodation e...
Post-death GST liability permits fresh proceedings against legal representatives, while discontinued-business recovery remains limited to the inherite...
Non-confirmation of FEMA seizure prevents adjudicators from overriding pending appellate findings on recorded reasons and suspected foreign asset hold...
CESTAT held that reimbursable expenses incurred by service provider for client during 2006-07 are not taxable. Relying on SC judgment in Intercontinental Consultants case, the tribunal affirmed that Rule 5(1) of Service Tax Valuation Rules, 2006 was ultra vires Sections 66 and 67 of the Finance Act. The 2015 amendment including reimbursable expenditure in taxable value is prospective and does not impact liability for earlier periods. Consequently, service tax demand, interest, and penalties on reimbursed expenses prior to 2015 amendment stand quashed. Appeal allowed.
CESTAT held that reimbursable expenses incurred by service provider for client during 2006-07 are not taxable. Relying on SC judgment in Intercontinental Consultants case, the tribunal affirmed that Rule 5(1) of Service Tax Valuation Rules, 2006 was ultra vires Sections 66 and 67 of the Finance Act. The 2015 amendment including reimbursable expenditure in taxable value is prospective and does not impact liability for earlier periods. Consequently, service tax demand, interest, and penalties on reimbursed expenses prior to 2015 amendment stand quashed. Appeal allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
