2011 (8) TMI 415

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....ate   Appeared for the Respondent: Shri Sonal Bajaj, SDR   Per Mathew John:   The appellant provided services of Authorized Service Station and Business Auxiliary Services. During the period 2003-04 to 2004-05, they had acted as agent for promoting vehicle loans provided by ICCI Bank for which the Bank paid them commission. Out of the commission paid by the Bank to the appe....

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....als), the appellant is before the Tribunal.   2. The appellant submits that the amount of subvention was directly paid by the bank to the customer taking loans and they had never received the amount. Therefore, no tax can be demanded on such amount which was not received by them. They concede that their books of account showed receipt of total amount of commission and the amount paid by th....

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....t alter the gross amount charged and service tax should be paid on the gross amount paid by the bank and reflected as receipts in the books of accounts of the appellant.   4. Considered arguments of both sides. It is very clear that as per Section 67 of Finance Act, 1994 service tax shall be paid on the gross amount charged by the service provider. It is also noticed that as per the submis....