TaxTMI 
TaxTMI 
2017 (11) TMI 545
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....arti, the appellant received a monthly fee equal to 10% of the basic fee payable to the hired broadcasting personnel through the appellant. In addition to this monthly fee, M/s. Prasar Bharti also reimbursed the fee payable to the broadcast personnel hired through the appellant. While the appellant discharged service tax on the fee received by them from M/s. Prasar Bharti for the service of supply of man power, they did not paid the service tax on the amount reimbursed towards fee payable to broadcast personnel. The Department was of the view that service tax was required to be paid on the full amount received by the appellant from M/s. Prasar Bharti. Accordingly, the demand of service tax was confirmed against the appellant vide the impugn....
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....s received not only their commission amount but also amount towards salary for the broadcasting personnel supplied by them, service tax is liable to be paid on the entire consideration received. He also relied on the following case laws: i) Neelav Jaiswal & Brothers Vs. CCE Allahabad - 2014 (34) STR 225 (Tri-Del) ii) CCE Mumbai Vs. Jubiliant Enpro Pvt. Ltd. - 2016 (46) STR 448 (Tri-Mum) 6. After hearing both the sides and perusal of the record, we note that the appellant has rendered the service of man power recruitment or supply service, to M/s. Prasar Bharti by making available broadcast personnel as per their requirement. In terms of the agreement between the appellant and M/s. Prasar Bharti, the appellant is entitled to receive reim....
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....e determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation-For the purposes of this section,- (a) "consideration" includes any amount that is payable for the taxable services provided....
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....oviding taxable service. b) Neither intends to hold nor holds any title to the goods or services so procured or provided as pure agent of the recipient of service. c) Does not use such goods or services so procured, and d) Receives only the actual amount incurred to procure such goods or services. 10. Only when all the four criteria as specified above are satisfied, a person can be called a pure agent. The adjudicating authority has elaborately discussed these criteria in para 9.1 of the impugned order as follows: "The term pure agent has been defined in Explanation 1 to the said rule, detailed above. I note that the primary characteristics of a pure agent is that he enters into a contractual agreement with the recipient of service....
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..... However, I find that third party in the present case viz. Broadcasting personnel are not rendering any service to DD / M/s. Prasar Bharti. It is rather the notice who are providing manpower supply or recruitment service to DD / M/s. Prasar Bharti for which the entire service charges, including the amount to be paid to such Broadcasting personnel is received by them. However, the service tax has not been paid on the entire amount received but only on a fraction thereof representing fee for the notice. In view of the above, I note that the notice do not qualify the above referred three conditions to be termed as a pure agent. I further note that section 67 of the Finance Act, 1994." 11. We are in agreement with the findings of the adjudic....
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....e service provider for such service provided or to be provided by him. 7. It is admitted that the liability to remit Provident Fund to Provident Fund Authorities is a statutory liability on the appellant, an employer of persons who were deployed to serve the needs of M/s. Hindalco Industries Ltd., towards the taxable „manpower recruitment or supply agency‟ service. M/s. Hindalco consideration for such taxable service provided by the appellant had remitted to the appellant not only the amount agreed to between the parties for remunerating the personnel so deployed but also the amount of provident fund payable by the appellant to Provident Fund authorities, in terms of the appellant‟s statutory obligation. Both these amoun....