Partners Not Liable for Service Tax on Firm's Remuneration, No Separate Service Recipient Exists, Profits Misclassified as Sales.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Liability of service tax - appellants are partners of partnership firm and they received certain renumeration from the firm - The partner of a partnership firm is none other than the same, therefore, one would cannot provide service to oneself. As there is no recipient of service in this case, no service has been provided by the appellant. In the income tax returns, the figures shown by the appellants as sale of service is just a portion of the profit earned by them from the partnership firm. In that circumstance, on merits itself, the appellants are not liable to pay service tax. - AT....