TaxTMI 
TaxTMI 
2024 (7) TMI 112
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....he category of Intellectual Property Right Service, Scientific and Technical Consultancy Service etc. and were discharging service tax. They entered into an agreement with M/s. Chevron Oronite Company LLC, USA and were paying royalty to the foreign company on the net sales of their products. During the scrutiny of details furnished by the appellant regarding the TDS portion of the royalty payment made for the period April 2010 to September 2010 and October 2011 to March 2012, it revealed that while paying service tax on the royalty payments made to the foreign company, the appellant had not paid service tax on TDS portion of the royalty amount retained by them. As it appeared to the department that TDS portion retained by them was also taxa....
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.... submits that the issue is no longer res integra as the said issue has already been decided by the Tribunal in favour of the appellant in the case of Adani Bunkering Pvt. Ltd. Vs. CCE, Ahmedabad - II reported in 2024 (1) TMI 984 - CESTAT Ahmedabad. Further in the appellant's own case, vide Final Order No. 40878/2018 dated 2.3.2018 and Final Order No. 42344/2021 dated 24.9.2021, it was held that service tax liability has to be discharged on amounts paid to the foreign service provider and there cannot be a demand on the TDS portion which has been separately discharged by the appellant. Accordingly, she prayed for setting aside the demand confirmed in the impugned order. 5. The learned AR Shri N. Satyanarayanan reiterated the findings in t....
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....ith the contention of the Appellant that the amount would not be part of the consideration for the taxable services received by them as per Section 67(1)(a) of the Finance Act, 1994 in the absence of the legislature itself sanctioning such a provision, mandating double taxation, in the Act. Accordingly, we observe that service tax is not payable on the TDS paid by the appellant on behalf of the foreign service provider. 9. The issue is no longer 'res integra' as it has already been decided by the Tribunal in the appellants own case and in the case of Adani Bunkering Pvt. Ltd. Vs. CCE, Ahmedabad - II reported in 2024 (1) TMI 984 - CESTAT Ahmedabad wherein the Tribunal has held that TDS deposited to the Income Tax Department in relation to....
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.... rate in force at the relevant point of time. 24.2 Thus, when it is contended that the assessee 'grossed up' the TDS, it is understood to mean that the assessee has indeed received only the amount as agreed towards value/consideration and the expenditure towards TDS are met by the assessee. So, when such TDS is not received from the non- resident since it is not towards value/consideration, there is no merit in requiring such assessee to include even the TDS it paid in the value of services, as in the case on hand. There is an argument advanced for the Revenue that as per the terms of agreement, it is for the appellants to bear the TDS and thus it is to be treated as part of the consideration. We are unable to yield to the ....