Jurisdictional sanction requirements bar reassessment when approval comes from an authority lacking statutory competence under the applicable framewor...
Recorded sales receipts cannot be reassessed as unexplained cash credits, eliminating the basis for consequential alleged commission expenditure addit...
Sufficient cause for delayed income-tax appeals requires bona fide diligence; unsubstantiated counsel illness and assessee inaction defeat condonation...
TNMM Segmentation Limits Transfer-Pricing Adjustments to Associated-Enterprise Transactions and Requires Turnover-Based Comparable Selection for IT Se...
Internal TNMM supports deletion of freight-forwarding adjustments where comparable non-AE transactions are separately identifiable and materially simi...
The CESTAT held that Indian banks acting as recipients of services for foreign bank charges in export transactions are not liable to pay service tax under the Reverse Charge Mechanism. The Tribunal relied on prior coordinate bench decisions establishing that Indian banks do not receive taxable services from foreign correspondent or intermediary banks in such transactions. Consequently, the demands for service tax, along with interest and penalties, imposed on the appellant were found to be unsustainable in law. The impugned order was set aside, and the appeal was allowed, absolving the appellant from the liability to pay service tax on foreign bank charges related to export remittances.
The CESTAT held that Indian banks acting as recipients of services for foreign bank charges in export transactions are not liable to pay service tax under the Reverse Charge Mechanism. The Tribunal relied on prior coordinate bench decisions establishing that Indian banks do not receive taxable services from foreign correspondent or intermediary banks in such transactions. Consequently, the demands for service tax, along with interest and penalties, imposed on the appellant were found to be unsustainable in law. The impugned order was set aside, and the appeal was allowed, absolving the appellant from the liability to pay service tax on foreign bank charges related to export remittances.
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TaxTMI 
TaxTMI 
