https://www.taxtmi.com/caselaws?id=765257 CESTAT Chandigarh ruled that service tax cannot be levied on telephone charge waivers given by appellants to employees as these constitute discounts/concessions rather than consideration received by the service provider. The tribunal held that for service tax valuation, only consideration flowing from service receiver to service provider is includable in gross amount charged. Since employees benefited from free allowances without any monetary flow to the appellant service provider, such waivers cannot form part of taxable consideration. The tribunal rejected the department's best judgment method and emphasized that service tax computation cannot be based on assumptions. Appeal was allowed, establishing that goodwill and employee benefits do not constitute taxable consideration for service providers. en-us Mon, 27 Jan 2025 00:00:00 +0530 Wed, 29 Jan 2025 09:00:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765257 CESTAT Chandigarh ruled that service tax cannot be levied on telephone charge waivers given by appellants to employees as these constitute discounts/concessions rather than consideration received by the service provider. The tribunal held that for service tax valuation, only consideration flowing from service receiver to service provider is includable in gross amount charged. Since employees benefited from free allowances without any monetary flow to the appellant service provider, such waivers cannot form part of taxable consideration. The tribunal rejected the department's best judgment method and emphasized that service tax computation cannot be based on assumptions. Appeal was allowed, establishing that goodwill and employee benefits do not constitute taxable consideration for service providers. Case-Laws Service Tax Mon, 27 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765257