All appeals dismissed; finding of anti-competitive bid-rigging upheld under Sections 3(3)(c), 3(3)(d) read with 3(1); cease-and-desist and total-turno...
Central Government notifies 11.541-hectare Special Economic Zone for semiconductor manufacturing; Approval Committee constituted, ICD status effective...
Government appoints National Customs Targeting Centre-Passenger director as customs officer with powers under PNR Regulations, 2022 and Sections 30A, ...
The CESTAT allowed the appeal, holding that reimbursements and expenses incurred by the service provider for goods, software and ancillary services procured and charged separately to the associated enterprise do not constitute taxable "gross amount charged" or consideration for the taxable service. Under the parties' Master Service Agreement, the recipient was to procure material/ERP and reimburse allocated costs; such reimbursements-accounted as sundry creditors and adjusted against receivables-were not additional consideration and were not paid as service charges. Consequently those amounts could not be included in service tax invoices nor added to the taxable value under Rule 4A of the Service Tax Rules, 1994, and the demands were unsustainable.
The CESTAT allowed the appeal, holding that reimbursements and expenses incurred by the service provider for goods, software and ancillary services procured and charged separately to the associated enterprise do not constitute taxable "gross amount charged" or consideration for the taxable service. Under the parties' Master Service Agreement, the recipient was to procure material/ERP and reimburse allocated costs; such reimbursements-accounted as sundry creditors and adjusted against receivables-were not additional consideration and were not paid as service charges. Consequently those amounts could not be included in service tax invoices nor added to the taxable value under Rule 4A of the Service Tax Rules, 1994, and the demands were unsustainable.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
