AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 325
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....od 2015-2016 (SCN-III). 2. CISF was registered with the Service Tax department and has been providing security services to various entities including the Delhi International Airport Limited (DIAL). CISF is a department under the Ministry of Home Affairs, Government of India. DIAL is an entity created to run the Delhi International Airport. CISF has been issuing monthly bills for the cost of deployment of staff including charges of arms & ammunition, clothing, supervision charges, etc. to DIAL and paid service tax on these amounts. 3. In addition to the service charges, DIAL provided some free services and facilities such as transportation, medical, reimbursement or office expense, telephone expenses, rent free accommodation, dog squad handling expenses, etc. The three SCNs proposed to levy service tax on these amounts also as per Rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 [2006 Rules] . They also proposed imposition of penalties and recovery of some interest. 4. The Commissioner dropped the demand made in SCN-I, SCN-II and part of the SCN-III (upto April 2015) but confirmed the demand of service tax only for the period May 2015 to March 2016. He also....
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....e purpose of calculating the service tax payable thereupon. 24. In this hue, the expression 'such' occurring in Section 67 of the Act assumes importance. In other words, valuation of taxable services for charging service tax, the authorities are to find what is the gross amount charged for providing 'such' taxable services. As a fortiori, any other amount which is calculated not for providing such taxable service cannot a part of that valuation as that amount is not calculated for providing such 'taxable service'. That according to us is the plain meaning which is to be attached to Section 67 (unamended, i.e., prior to May 1, 2006) or after its amendment, with effect from, May 1, 2006. Once this interpretation is to be given to Section 67, it hardly needs to be emphasised that Rule 5 of the Rules went much beyond the mandate of Section 67. We, therefore, find that High Court was right in interpreting Sections 66 and 67 to say that in the valuation of taxable service, the value of taxable service shall be the gross amount charged by the service provider 'for such service' and the valuation of tax service cannot be anything more or less than the consideration paid as quid pr....
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....nd after 2012, as per section 68(1) of the Finance Act, the service tax had to be paid by the person providing the service. However, the Central Government was empowered by section 68(2) of the Finance Act to notify services where part or whole of the service tax must be paid by the service recipient as if he was the one who had provided the services. Section 68 reads as follows: 68. Payment of service tax. - (1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 66B in such manner and within such period as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), in respect of such taxable service as may be notified by the Central Government in the Official Gazette, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66B and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.] Provided that the Central Government may notify the service and the extent of service tax which shall be payable by such person and the p....
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....an Ganga Saran, both the taxable event which makes the tax payable and the person who is obliged to pay the tax are two of the essential components of any charge of tax. If it is chargeable from 'A', it cannot be charged from 'B'. Usually, as per section 68(1) of the Finance Act, the service provider has to pay the service tax but if the Central Government issues a notification shifting part or whole of the liability to pay service tax to the service recipient, the liability shifts to that extent to the service recipient. Needless to say that in such cases, the service tax can be charged from the service recipient and cannot be charged from the service provider. 16. We now proceed to examine the Notification No. 30/2012 dated 20.6.2012. Relevant portion of the notification reads as follows: GSR ......(E).-In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of (i) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2012-Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide ....
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....ne of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory; (B) provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory; (II) The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:- Table Sl. No Description of a service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service 1 6 in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,-(1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) ....