https://www.taxtmi.com/caselaws?id=312477 CESTAT Mumbai ruled in favor of appellant regarding service tax levy on corporate guarantees provided to subsidiaries. The tax department demanded service tax based on notional income calculations under Transfer Pricing provisions of Income Tax Act, 1961, despite no actual guarantee fee being charged. The tribunal held that service tax applies only when consideration is received for services. Since appellant charged no commission or consideration for providing corporate guarantees to overseas subsidiaries, no service tax liability arose. The demand was deemed without merit and the appeal was allowed. en-us Mon, 09 Oct 2023 00:00:00 +0530 Tue, 20 Feb 2024 19:47:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312477 CESTAT Mumbai ruled in favor of appellant regarding service tax levy on corporate guarantees provided to subsidiaries. The tax department demanded service tax based on notional income calculations under Transfer Pricing provisions of Income Tax Act, 1961, despite no actual guarantee fee being charged. The tribunal held that service tax applies only when consideration is received for services. Since appellant charged no commission or consideration for providing corporate guarantees to overseas subsidiaries, no service tax liability arose. The demand was deemed without merit and the appeal was allowed. Case-Laws Service Tax Mon, 09 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312477