Demand not sustainable only because the Assessee had admitted Service tax liability

Demand not sustainable only because the Assessee had admitted Service tax liability https://www.taxtmi.com/article/detailed?id=5900 An admission or payment by the assessee does not sustain a tax demand when the underlying transaction is a contract of hire rather than renting; taxability depends on the factual character of services. Article 265 precludes levying tax except by law, so payments or promises to pay cannot be used to uphold a demand where statutory entitlement to tax is absent, and payments made under compulsion do not validate the tax. en-us Sat, 08 Nov 2014 06:10:04 +0530 Sat, 08 Nov 2014 06:10:04 +0530 TaxTMI RSS Generator Demand not sustainable only because the Assessee had admitted Service tax liability https://www.taxtmi.com/article/detailed?id=5900 An admission or payment by the assessee does not sustain a tax demand when the underlying transaction is a contract of hire rather than renting; taxability depends on the factual character of services. Article 265 precludes levying tax except by law, so payments or promises to pay cannot be used to uphold a demand where statutory entitlement to tax is absent, and payments made under compulsion do not validate the tax. Articles Service Tax Sat, 08 Nov 2014 06:10:04 +0530 https://www.taxtmi.com/article/detailed?id=5900