https://www.taxtmi.com/caselaws?id=753348 The CESTAT New Delhi dismissed the appeal regarding service tax demand on corporate guarantee and margin retained for cargo space booking. The tribunal held that corporate guarantee provided without consideration is not taxable under Finance Act, 1994, as it lacks the essential element of consideration flow for service rendering. Regarding profit/markup taxability, the tribunal followed established precedent that such amounts are liable to service tax. The tribunal upheld the lower authority's order, confirming no service tax liability on gratuitous corporate guarantees while maintaining taxability of profit margins. en-us Thu, 30 May 2024 00:00:00 +0530 Fri, 31 May 2024 08:37:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753348 The CESTAT New Delhi dismissed the appeal regarding service tax demand on corporate guarantee and margin retained for cargo space booking. The tribunal held that corporate guarantee provided without consideration is not taxable under Finance Act, 1994, as it lacks the essential element of consideration flow for service rendering. Regarding profit/markup taxability, the tribunal followed established precedent that such amounts are liable to service tax. The tribunal upheld the lower authority's order, confirming no service tax liability on gratuitous corporate guarantees while maintaining taxability of profit margins. Case-Laws Service Tax Thu, 30 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753348