TaxTMI 
TaxTMI 
2026 (6) TMI 640
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.... or Business Consultant Service, Manpower Recruitment or Supply Agency Services and Information Technology Software Services'. 2. During auditing the records of the appellant, the Revenue officers noticed that for the period from October 2007 to March 2012, service tax was not being discharged by the appellant on the services received by them from their holding company, Canada under Reverse Charge Mechanism (RCM). Accordingly, notice was issued and the Commissioner in the impugned order on observing that the 'secondment agreement' held that technical personnel were provided to the appellant for which they were liable to pay service tax and accordingly, confirmed the demand of Rs.25,57,292/- under the category of manpower supply. The noti....
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....Intercontinental Consultants and Technocrats Pvt. Ltd.: 2018 (10) GSTL 401 (SC). 3.2 With regard to the second issue, it is submitted that the demand is on the training given to their employees, which was conducted outside India and hence, the liability does not arise and it is also stated that the entire amount along with interest since paid prior to the issue of show-cause notice, the demand has to be limited to normal period. 3.3 With regard to cost sharing issue, it is submitted that the cost sharing arrangement was simply an arrangement to share the cost and it has nothing to do with any services being rendered or provided by the appellant and further, this cannot be treated as Business Support Services as there is nothing on rec....
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.... company viz. M/s. CAE Inc., Canada is for the technical services provided to the assessee and also the amount is paid in foreign currency which include the salary paid to the personnel deployed by the holding company. Further, I find that the secondment agreement is between the assessee company and the foreign holding company for supply of technical personnel to assist the assessee in its business. As per the terms and the conditions of the said secondment agreement, the holding company CAE Inc., Canada has to provide the suitable technical personnel as per the requirement to be set by the assessee to match the criteria and the said personnel continued to be remunerated through the payroll of the CAE Inc., Canada for the purpose of continu....
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....e reimbursement is through foreign exchange." From the above, we find that the entire demand is based on the Secondment Agreement and the payment is towards the technical assistance received by the appellant. In their grounds of appeal, the appellant also submits that they agreed and paid service tax amount of Rs.12,42,164/- but contested the balance amount of Rs.13,15,128/-. We also find that at the time of audit, the appellant had admitted to having received the technical services from their associate company and accordingly, discharged service tax liability of Rs.12,42,164/- immediately along with interest. However, an amount of Rs.13,15,128/- which was demanded was paid under protest on the ground that it was reimbursable amount of t....
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....reign associate company. The said nonpayment was noticed during the reconciliation of the value with the service tax paid at the time of audit of the accounts of the assessee by the department. I find that there's no disagreement by the assessee with regard to the demand in their submissions and the amount and for having accepted the liability, the assessee has paid the entire amount of demand along with interest which can be appropriated". 6.1 The appellant in their reply to the audit para have stated that 'In this regard we wish to state that we have erroneously missed to pay service tax on the above payment. We have discharged the service tax (including cess) of Rs.5,90,328/- along with interest of Rs. 3,22,432/-'. Even in their reply....