Service tax on TDS portion of royalty payments to foreign company deemed unsustainable u/s 67 and Rule 7.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Demand of service tax - Valuation - Inclusion of TDS portion of the royalty paid to the foreign company - On the plain reading of Section 67 with Rule 7 of Service Tax Valuation Rules, in this case in hand, Service Tax liability needs to be discharged on amounts which have been billed by the service provider - - The levy of service tax on the TDS portion borne by the appellant cannot sustain and requires to be set aside - AT....