2018 (2) TMI 1042

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....P.S. Associates on 13.03.2004. The agreement envisaged the usage of expertise of the respondent-assessee with reference to the project developed by M/s RPS Associates. Both the parties have responsibilities and obligation in terms of the said agreement. In pursuance of the agreement a joint account was also opened in which all the proceeds for the project development and installed to various customers were credited. The appellant received their consideration, which is 8% of the gross amount credited in the said joint account. The Revenue entertained a view that the appellants were providing taxable service under the category of "Management or Business Consultant" in terms of Section 65(65) read with Section 65(105)(r) of the Finance Act, 19....

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.... income cannot be subjected to tax as there is no service provider in the arrangement. Ld. AR further contested that the method of receipt of consideration should not affect the tax liability of the appellant. On the second issue, he submitted that the respondent-assessee, admittedly received certain amount from the allottee of the unit in the project for transferring the name in favour of the third party. Such activity is rightly taxed under "Real Estate Agent" service as the respondent acted as an agent in the said arrangement. He relied on the decision of the Tribunal in the case of Ajay Enterprises Pvt. Limited - 2016-TIOL-580-CESTAT-Delhi which was upheld by the Hon'ble Supreme Court. 5. Ld. Counsel appearing for the respondent -ass....

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....customers. They will undertake exhibition, publicity aimed at promotion of the project developed by M/s RPS Associates. For these activities they received consideration as percentage of gross receipt in the development of the project. 8. On a careful consideration of the terms of the agreement, we are unable to discern any element of advise or consultancy involved. The respondent - assessee has not provided any advice or consultancy with reference to organisation of M/s RPS Associates or business of M/s RPS Associates. No such role can be inferred from the agreement. We also note that it is essentially a joint business arrangement in which the amount is shared based on the gross receipt. Accordingly, we are in agreement with the finding ....