SIGN IN SUBSCRIBE

News Update

SC holds influencers, celebrities equally accountable for misleading adsGST - Appellate Authority has not noticed the provisions of Section 12 of the Limitation Act, 1963 which mandates that the day on which the judgment complained of was pronounced, is also to be excluded: HCKejriwal’s judicial custody extended till May 20GST - If the Proper Officer was of the view that the reply filed was insufficient, he could have sought more clarification - Without providing any such opportunity, impugned order could not have been passed - Matter remanded: HCGST - Notice requiring petitioner to furnish additional information/clarification does not mention that petitioner had to appear for personal hearing - Since no opportunity of personal hearing was given, order is unsustainable: HCGST - For the purposes of DNB and FNB courses, petitioner clearly falls within the scope of an educational institution imparting education to students enrolled with it as a part of a curriculum - Services exempted: HCGST - Candidates appearing for the screening tests are not students of the petitioner - Petitioner's claim of exemption on such examination fees is unmerited: HCGST - NEET examinations are in the nature of an entrance examination - Petitioner would be entitled to the benefit of an exemption by virtue of Serial No.66(aa) of the 2017 Notification, which came into effect on 25.01.2018: HCBrisk voting reported from all 96 LS seats; PM casts vote in AhmedabadIndia calls back half of troops stationed at MaldivesIndia-Australia DTAA: Economic Statecraft through TaxRBI alerts against misuse of banking channels for facilitating illegal forex tradingTime Limit to file Appeal in GST Appellate TribunalEC censures Jagan Reddy & Chandrababu Naidu for MCC violationsFrance tells Xi Jinping EU needs protection from China’s cheap importsI-T- Addition cannot be made merely for reason that assessee got property transferred through registered sale without making payment to vendor: ITATI-T- Addition which is not based on the reasons for reopening is un-sustainable sans notice u/s 148 of the ACT: ITATOxygen valve malfunction delays launch of Boeing’s first crewed spacecraftFM administers Oath to Justice Sanjaya Kumar Mishra as first President of GST TribunalGhana agrees to activate UPI links in 6 monthsED seizes about 20 kg gold from locker of a cyber scammer in Haryana
 
ST – Commission received in foreign exchange for purpose of sales promotion and marketing of goods produced by foreign firm, in India - service is export under Rules, 2005: CESTAT

 

By TIOL News Service

MUMBAI, APRIL 11, 2018: THE appellant entered into agreements with M/s Aashmore Pvt Ltd, Singapore for rendering the said service of 'commercial advisor' for the purpose of sales promotion and marketing of goods produced by the said foreign firm in India. Appellant received commission from the foreign firm in convertible foreign exchange for providing the said service in India.

Revenue entertained a view that the appellant had provided taxable services of 'Business Auxiliary Services' which have been 'consumed-in-business' within India by the said foreign firm and, therefore, the same is liable to service tax.

Having failed at the lower level of appeal, the assessee is before the CESTAT.

It is submitted that the impugned order is not sustainable in law as the same has been passed without considering the Circular No. 111/5/2009-ST dated 24.02.2009 wherein the Board has clarified that it is possible that export of service may take place even when all the relevant activities take place in India so long as the benefits of these services accrue outside India. Referring to rule 3(1)(iii) of the Export of Services Rules, 2005, the appellant pleaded that since they satisfy the conditions mentioned therein, the service is to be treated as export and no tax is chargeable. A plethora of case laws is also cited in support.

The AR supported the impugned order.

The Bench observed that the appellant was acting as commission agent of M/s Aashmore Pvt Ltd, a foreign company who is the recipient of the service and in view of the Board Circular 111/5/2009-ST dated 24.02.2009 and the case laws cited, particularly in Sumitomo Corporation India Pvt. Ltd . 2017-TIOL-452-CESTAT-DEL involving an identical issue, wherein it has been held that when the services are provided in India and used outside India and payment for such services is received by the service provider in convertible foreign exchange then it will be treated as Export of Services under the Rules, 2005, the impugned order is not sustainable in law.

The appeal was allowed.

(See 2018-TIOL-1145-CESTAT-MUM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST