Service tax demand quashed: Form 26AS alone insufficient; taxable receipt limited to TDS and Rule 2A abatement below ₹10 lakh

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CESTAT allowed the appeal and quashed the demand, interest and penalties. The Tribunal held that service tax cannot be sustained solely on CBDT/Form 26AS data absent corroborative evidence. For FY 2015-16 the taxable receipt was limited to the sum evidenced by TDS (Rs.36,34,958), not the total turnover shown in income-tax records. The appellant supplied materials and performed original works; Rule 2A abatement (40% taxable value) was applicable and the resultant taxable value fell below the Rs.10 lakh threshold exemption. Consequently no service tax was payable for FY 2015-16. As the demand failed on merits, limitation, interest and penalty issues were not adjudicated further.....