TaxTMI 
TaxTMI 
2025 (5) TMI 1131
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.... of the case in brief are that on the basis of third party information received from the Income Tax Department [ITD] for the Financial Year 2015-16 to 2016-17, it was noticed by the Service Tax Department that the assessee had received an amount of Rs.34,67,283/- and Rs.26,67,360/- respectively but no service tax was paid on the said amounts. It is the case of the Department that they had sought for the Balance Sheets, Service Tax Returns, Ledger etc., from the assessee for verification of their service tax liability but there was no response to any of their correspondences and it has been mentioned that in the absence of any required documents, the whole amounts shown in the data provided by the ITD was considered as the taxable value and ....
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....stitutions, involved some amount of pocket expenses in order to have verification details of the land/property from various district offices and other associated service providers like legal report, legal status, counsel report, Tehsildaar report, cost valuer report of the property, site map, map survey from the Revenue records, legal survey of the documents (Khasra, Khatauni), Stationery and civil instruments. Therefore, the Appellant used to charge the clients with the service charges alongwith reimbursement of expenses which were incurred by the Appellant on behalf of his clients in order to get various reports from the concerned district offices. The Appellant charged his professional fee/charges provided to the service recipients along....
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....ion of Value) Rules, 2006 states as under:- "RULE 5. Inclusion in or exclusion from value of certain expenditure or costs. - (1) Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service. [Explanation.- For the removal of doubts, it is hereby clarified that for the [the value of the telecommunication service shall be the gross amount paid by the person to whom telecommunication service is actually provided].] (2) Subject to the provisions of sub-rule (1),....
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....pure agent" means a person who - (a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service; (b) neither intends to hold nor holds any title to the goods or services so procured or provided as pure agent of the recipient of service; (c) does not use such goods or services so procured; and (d) receives only the actual amount incurred to procure such goods or services. Explanation 2. - For the removal of doubts it is clarified that the value of the taxable service is the total amount of consideration consisting of all components of the taxable service and it is immaterial that the details of....
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....ses such as telephone charges, air travel tickets, hotel accommodation, etc., to enable him to effectively perform the provision of services to A. In such a case, in whatever form B recovers such expenditure from A, whether as a separately itemised expense or as part of an inclusive overall fee, service tax is payable on the total amount charged by B. Value of the taxable service for charging service tax is what A pays to B. Illustration 4. - Company X provides a taxable service of rent-a-cab by providing chauffeur-driven cars for overseas visitors. The chauffeur is given a lump sum amount to cover his food and overnight accommodation and any other incidental expenses such as parking fees by the Company X during the tour. At the en....