https://www.taxtmi.com/caselaws?id=360903 Testing charges collected by a statutory water supply board for inspection of pipes used in its own schemes were not consideration for a taxable service under the Finance Act, 1994. The activity was undertaken to verify quality for the board's works, not at the contractors' desire, and the contractual obligation to bear testing charges did not by itself create a service provider-service recipient relationship. In the absence of quid pro quo and an identifiable service rendered for consideration, the recovered amount could not be treated as taxable value. The board's statutory functions also supported the view that the testing was incidental to its own obligations, so service tax was not leviable. en-us Tue, 01 May 2018 00:00:00 +0530 Mon, 09 Jul 2018 16:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360903 Testing charges collected by a statutory water supply board for inspection of pipes used in its own schemes were not consideration for a taxable service under the Finance Act, 1994. The activity was undertaken to verify quality for the board's works, not at the contractors' desire, and the contractual obligation to bear testing charges did not by itself create a service provider-service recipient relationship. In the absence of quid pro quo and an identifiable service rendered for consideration, the recovered amount could not be treated as taxable value. The board's statutory functions also supported the view that the testing was incidental to its own obligations, so service tax was not leviable. Case-Laws Service Tax Tue, 01 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360903