TaxTMI 
TaxTMI 
2025 (8) TMI 1347
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....rder-in-Appeal No. 38/2015 (STA-I) dated 16.02.2015 passed by the Commissioner of Service Tax (Appeals-I), Chennai. 2. The facts of the case are that the Appellants are service providers under the 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 2008 to March 2011, it revealed that while paying service tax on the royalty payments made to the foreign company, the appellan....
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....ll be the actual consideration charged for the services provided or to be provided. Further, she submitted that the issue is no longer res-integra owing to the three judgments issued by the Tribunal in the Appellant's own case, the details of which are provided below: - i. Final Order No. 40878/2018 dated 02.03.2018 ii. Final Order No. 42344/2021 dated 24.09.2021 iii. Final Order No. 40783-84/2024 dated 02.07.2024 4. Per Contra, the Ld. Authorized Representative Mr. Sanjay Kakkar appearing for the Revenue, re-iterated the findings in the order in appeal and submitted the appeal is liable to be rejected. 5. Heard both sides and considered the rival submissions including the evidence available on appeal....
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....Stevens v. The Durban-75 Roddepoort Gold Mining Co. Ltd.(). The Constitution does not contain any prohibition against double taxation even if it be assumed that such a taxation is involved in the case of a firm and its partners after the amendment of s. 23 (5) by the Act of 1956. Nor is there any other enactment which interdicts such taxation. ...If any double taxation is involved the legislature itself has, in express words, sanctioned it. It is not open to any one thereafter to invoke the general principles that the subject cannot be taxed twice over." (emphasis added) 8. However, we find that the TDS paid/ deposited to the government exchequer by the appellant arises out of a statutory liability. In the normal ....
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....on 195 of the Income tax Act, 1961 deals with Tax to be deducted at source when payment is made to non residents or foreign companies. This is basically to plug revenue loss that may occur if by any chance the non- resident doesn't file income tax return in India. Further, under said section, such sum alone is taxable which has the character of 'income'. Thus, the TDS is a tax obligation which can never partake the character of value or consideration for the transaction or of the goods or of services. It is not uncommon that any business contract/agreement inter-se parties primarily focuses on the obligation. This cannot be construed as to mean that TDS is also a part value/consideration and then spells out as to who would bear ....