TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 28
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....availing car loan from ICICI Bank and they obtain commission from the Bank for these services. Commission is sought to be taxed under the head of Business Auxiliary Services. The dispute relates to the period 01.07.2003 to 30.06.2005 subsequent to this period the appellants are paying the tax. The two appellants are both proprietary concern belonging to two brothers. Ld. Counsel admitted that the taxability issue has been settled against them by the decision of Brij Motors Pvt. Ltd. 2012 (25) STR 489. However Ld. Counsel argued that they were under bonafide belief that the said services are not taxable. He pointed out that at the material time there was some confusion regarding taxability of service and therefore, extended period of limitat....
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....aluation. It has been argued that the service tax should be denied only on the amount received by them net of subvention. In this regard, Tribunal in the case of Jaybharat Automobiles Ltd. (supra) has observed as follows: "6.2 The question that remains to be examined is the quantum of commission actually received by the appellant from HDFC. The appellant disputes the amount indicated by HDFC in their letters to the department. The appellant insist that the amount received by them was less. The ld. Counsel argued that they should have been allowed to cross-examine officials of the bank. We are of the view that cross-examination of bank official is not necessary for such a simple factual matter. The bank has clearly indicated in their replie....
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....e franchisee agreement in the third appeal, it is clear that the assessees were, under an agreement with the bank had undertaken to provide service in relation to promotion or marketing of the 'Banking and Financial Services' provided by the banks. The banks were providing services under the category 'Banking and Other financial services' falling in clause (12) of Section 65. In relation to those services, the respondent-assessees were providing services for promotion or marketing of the banking and other financial services provided by the banks. The banks were, therefore, their clients being recipient of such services from the respondents. It has come in evidence that the respondents were required to obtain loan applications from their cus....