2018 (1) TMI 1057

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....ax under Management Consultancy Service and Others . The dispute in the present case relates to some part of their activities which are essentially with reference to giving opinion, updates on tax, legal position, filing of tax returns under various statutes relating to Income Tax, Service Tax, Sales Tax etc. under various auxiliary services with reference to compliance of these tax laws by the client. Revenue entertained a view that these activities are to be covered under the category of Management Consultant in terms of section 65(105)(r) r/w section 65(65) of Finance Act, 1994. Accordingly, proceedings were initiated against the appellant which resulted in the impugned order. The original authority held that the activities as narrated a....

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....s such the original authority is correct in holding that tax liability of the appellant. Advice relating to tax laws is nothing but promotion of financial management of an organization. 4. We have heard both sides and have perused the appeal records. 5. Management Consultant is defined as below: "management consultant means any person who is engaged in providing any service either directly or indirectly, in connection with the management of any organization in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organization" 6. The nature of services, now in....

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....nsibility per se cannot bring it into the ambit of the words in connection with the management of any organisation used in Section 65(105)(r) and Section 65(65) of Finance Act, 1994 to tax such services. In this matter we see merit in the clarification given by CBEC in para 9 of its circular dated 27-6-2001. The decision of the Apex Court in the case of Parle Exports (P) Ltd. (supra) gives the rule that a taxing entry should be understood in the same way in which these are understood in the ordinary parlance. According to CBEC the ordinary meaning of management will not cover Compliance Services. According to the adjudicating authority ordinary meaning of management covers Compliance Services. We concur with the view of CBEC and reject the ....