TaxTMI 
TaxTMI 
2024 (10) TMI 1818
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....9;manpower recruitment or supply agency' is liable to be pay service tax on the gross amount including the reimbursement of wages, etc., paid to the workers. 2. The brief facts are the Appellant M/s. Hindustan Newsprint Employees Co-operative Bank Ltd., is a Cooperative Society registered under Kerala Cooperative Societies Act, 1969 and entered into a contract for supply of labour to M/s Hindustan Newsprint Ltd., awarded to the Appellant and the service was awarded through letter dated 24.10.2005. Alleging that the activity carried out by the Appellant is under the category of 'manpower recruitment or supply' service, proceedings were initiated and Adjudicating authority as per Orders-in-Original No. 01 & 02/2010 dated 07.01.....
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....arate remittance is made to the service provider for the said purpose, wages are distributed to the workers by the service provider with proper acknowledgement. As per Service Tax (Determination of Value) Rules, 2006 expenses or cost incurred by the service provider as a pure agent of the recipient of service shall be excluded from the value of the taxable services and the appellant had complied with the conditions specified in the valuation rules. The Learned Chartered Accountant submits that the Learned Commissioner has also observed that the appellant can be considered as pure agent only if the appellant acts as an agent of the recipient of the service i.e., Hindustan Newsprint Ltd. However, the Commissioner did not give any findings as ....
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....of M.P. Security Force Vs Commr. of Central Excise & S.T, Bhopal - 2020 (43) GSTL 253 (Tri.-Del.) held that:- 8. The issue regarding valuation of taxable services has been the subject matter of decision of Hon'ble Delhi High Court in case of Intercontinental Consultants & Technocrats Pvt. Ltd. (supra), which has been affirmed by Hon'ble Supreme Court as reported in 2018 (10) G.S.T.L. 401 (S.C.), wherein it is held that under provision of Section 67(1) of the Act only service element has to be included for gross amount of "such services". The relevant portion of the judgment is extracted as under: "18. Section 66 levies service tax at a particular rate on the value of taxable services. Section 67(1) makes the provis....
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....rts to tax not what is due from the service provider under the charging Section, but it seeks to extract something more from him by including in the valuation of the taxable service the other expenditure and costs which are incurred by the service provider "in the course of providing taxable service" What is brought to charge under the relevant Sections is only the consideration for the taxable service. By including the expenditure and costs, Rule 5(1) goes far beyond the charging provisions and cannot be upheld. It is no answer to say that under sub-section (4) of Section 94 of the Act, every rule framed by the Central Government shall be laid before each House of Parliament and that the House has the power to modify the rule. As pointed o....
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....ant. The fact is not under dispute that such contributed amount was never given by such service receiver to the appellant. Thus, the gross value for the computation of service tax liability in the hands of the appellant will not take into consideration the amount of contribution made by the service receiver M/s. HNGIL directly into the respective heads of account. Therefore, in our considered view, service tax demand cannot be confirmed on the employer's contributed amount towards P.F., E.P. F. and E.SI." In this order earlier decision of Tribunal in case of Neelav Jaiswal and Brothers v. Commissioner of Central Excise, Allahabad - 2014 (34) S.T.R. 225 (Tri. - Del.) was also considered, which is referred in the impugne....
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....etary, of the Board, within such time after the end of the month, as may be specified by the Board. The Secretary thereupon shall arrange to disburse the wages and other dues, if any to the registered Security Guards of the Board on specified days every month subject to deductions, if any, recoverable from them under the Scheme: Provided that the Board may, if it thinks fit, and subject to such conditions as may be laid down by it, allow a registered principal employer to pay directly to the Security Guards the wages and other allowances after making such deductions as may be authorized and recoverable from them under the Scheme, within such time and in such manner as may be specified by the Board." From the above clause, ....