TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1248
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....ucted by the officers of internal audit during the month of December 2007, it was revealed that the company is originally based at Baroda and has a separate registration there. After successful exploration at the cauvery basin, they have moved to Chennai during 2005 and got registered with the Service Tax Department for providing various services. For performing the petroleum operations, the appellants entered into contract for provision of manpower, hire of equipment contracts, consultancy contracts, material contracts and other service contracts with various companies who are experts in the field some located in India and mostly located abroad and appellants are receiving various input services from the persons / companies based abroad wh....
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....ient of service is liable to pay freight and has to discharge the service tax on such freights. The appellants are therefore liable to pay service tax on GTA service with effect from 1.1.2005 which works out to Rs. 61,500/-. 1.4 Show cause notice was issued proposing to demand a sum of Rs. 14,74,789/- under various heads as stated above along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalty under section 78 of Finance Act, 1994. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri L. Shibi appeared and argued the matter. 2.1 The first issue is with regard to non-inclusio....
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....says Rs. 100/-. It would be apt to mention here that the service provider charges the company for a gross amount of Rs. 100/- only in such case. He is not at all concerned with the liability for Indian direct taxes and does not charge for the same. The company grosses up the amount and deducts income tax TDS thereon say Rs. 5/. The company pays the contractor Rs. 100/-, the income tax department Rs. 5/- as TDS and Rs. 12.36 (12.36% of Rs. 100/-) to the Service Tax Department as service tax. The service tax department has been demanding service tax on the gross amount charged by the contractor as well as the TDS paid by the company in relation to the contract value but not charged by the service provider. It is clarified that TDS in such cas....
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....non-inclusion of TDS part which is paid under reverse charge mechanism for the services provided by foreign company. The ld. counsel for appellant has explained that there were two types of contracts and in the second category, the tax has to be borne by the service recipient which is the appellant herein. There is no dispute with regard to the service tax that is payable under the first category as a services provider. The demand is only with regard to the second type of contracts. The appellant has furnished documents to show that though TDS amount is deposited the same is borne by the appellant and has not been made part of the consideration. On perusal of documents, we are convinced that TDS has been borne by the appellant. For example,....
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.... agreement. Subsequently, learned Counsel would take us through the provision of Service Tax (Determination of Value) Rules, 2006, as per Rule 7 during the relevant period, the provisions were very clear as to actual consultant charges need to be taxed. For this purpose, he relied upon the judgment of the Tribunal in the case of Commissioner of Central Excise, Raigad v. Jawaharlal Nehru Port Trust P. Ltd. - 2015 (40) S.T.R. 533 (Tri.-Mumbai)." The Tribunal in the above decision had set aside the demand. Following the same, the demand under this category requires to be set aside, which we hereby do. 5.2 The second issue is with regard to the non-inclusion of expenses like airfare, accommodation expenses and incidental expenses borne in reg....