TaxTMI 
TaxTMI 
2021 (10) TMI 487
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.... for the Appellant Shri Arul C. Durairaj, Superintendent (AR) for the Respondent ORDER Per Ms. Sulekha Beevi C.S. The appellants are engaged in the manufacture of additives. They entered into technical assistance agreements with M/s. Chevron Oronite Company LLC, USA. As per the agreement, the appellant is paying royalty to the foreign company on the basis of net sales of the products manufactu....
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....ischarged service tax on the entire consideration paid to the foreign service provider. TDS was paid separately by the appellant in terms of agreement entered by the appellant with foreign company. As per the agreement, the running royalty shall be the net of Indian income tax which shall be borne by the appellant. The demand of service tax on the TDS amount is incorrect as the TDS is borne by app....
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....8. Service Tax Valuation Rules, 2006 before amendment by Notification No. 24/2012-S.T., specifically Rule 7 needs to be read to arrive at the correct value of taxable service provided from outside India relevant Rule is reproduced : - "7. Actual consideration to be the value of taxable service provided from outside India (1) The value of taxable service received under the provisions of Section....
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....ice/bill raised by the service provider and on perusal of the same, we find that appellant had discharged the consideration as raised in the said invoice/bill. There is nothing on record that indicates that the appellant had recovered that amount of Income Tax paid by them on such amount paid to the service provider from the outside India and any other material to hold that this amount is paid as ....