TaxTMI 
TaxTMI 
2005 (2) TMI 651
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....n, Montreal, Canada, as a consulting engineer. He also confirmed to penalty imposed by the lower authority. Hence this appeal. 2. Heard both sides. 3. Services rendered by a consulting engineer were brought into service tax net with effect from 7-7-97. There is no dispute that the above named foreign company provided consulting engineering services to the appellant. The period of dispute is August 1998 to September 2002. We are not going into the various services provided by the foreigner. Suffice it to say that they fall in the category of taxable service under Finance Act, 1994. 4. The agreement entered into between the parties clearly provides in the contract for Consultants Services in Clause 7.5 :- "All rates prices ....
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....three persons, i.e. the service provider, his agent or authorised person and the service receiver. In the present case, K.S.E.B. cannot be considered as an agent of SNC Lavelin, Canada for the simple reason that the former is a service receiver not an agent of the foreign company. K.S.E.B. also cannot be considered as an authorised person on behalf of the foreign company for the reason that K.S.E.B. does not represent the foreign company in India. K.S.E.B. merely discharges tax liabilities accruing out of the payments made to the foreign company in terms of the payment terms enumerated in the contract. Tax deductions at source is prescribed under Income-tax Act whereas no such condition to deduct tax at source exists into Service Tax Rules.....