Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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CESTAT allowed the appeal substantially. It held that amounts recovered from tenants towards electricity, transmission and distribution losses, gas and air-conditioning, collected as a pure agent under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, were not liable to service tax as bundled services; the demand of Rs. 2,32,48,096/- was set aside. Service tax of Rs. 7,010/- under RCM on legal services, already paid with interest and not contested, was upheld. Disallowance of CENVAT credit was restricted to Rs. 90,787/- (with interest), as voluntarily reversed; the balance disallowance was quashed. Demands on advances, being refundable loans, were set aside. Absence of intent to evade being established, all penalties imposed in the impugned order were vacated.
CESTAT allowed the appeal substantially. It held that amounts recovered from tenants towards electricity, transmission and distribution losses, gas and air-conditioning, collected as a pure agent under Rule 5 of the Service Tax (Determination of Value) Rules, 2006, were not liable to service tax as bundled services; the demand of Rs. 2,32,48,096/- was set aside. Service tax of Rs. 7,010/- under RCM on legal services, already paid with interest and not contested, was upheld. Disallowance of CENVAT credit was restricted to Rs. 90,787/- (with interest), as voluntarily reversed; the balance disallowance was quashed. Demands on advances, being refundable loans, were set aside. Absence of intent to evade being established, all penalties imposed in the impugned order were vacated.
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