9911796707
TMI Blog2012 (9) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee could not form part of amount for the purpose of deemed profits u/s 44BB unlike the other amounts received towards reimbursement - Decided against Revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... he Government, Service Tax is collected by the service provider and paid to the Govt. Thus the service provider is a conduit/mechanism for collecting service tax from the service recipient. The same does not become the income of the service provider. In other words, the service provider acquires no title to the receipts by way of service tax. There is no element of income, much less profits accruing to the service provider from the levy and collection of service tax. The same is a statutory levy mandated by law. Therefore, it cannot be included in the total receipts for determining presumptive profit u/s 44BB of the Act. 5. Ld.CIT(A) while considering and accepting the plea of the assessee has concluded to allow the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . vs. Addl. DIT (International Taxation) in ITA No.5284/Del./2011, has decided the issue in favour of the assessee and relevant portion of the decision, which has been dealt with by the tribunal in its order as under: 4. …………..Regarding reimbursement of service tax, the ld. AR pointed out that though the ITAT Delhi Bench in their decision in the case of DIT (International Taxation) Vs. Technip Offshore Contracting BV,29 SOT 33(Delhi) concluded that service tax collected by the assessee being directly in connection with services or facilities or supply specified u/s 44BB of the Act provided by the assessee to ONGC, have to be included in the total receipts for the purpose of determination of presumptive profit u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause (a) of sub-s. (2) refers to the amounts, (A) paid to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, and (B) payable to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India. Clause (b) of sub-s. (2) refers to the amounts, (A) received by assessee in India on account of the provision of services and facilities in connection with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent of the aggregate amount specified in sub-s. (2). It is not in dispute that the amount has been received by the assessee company. Therefore, the AO added the said amount which was received by the non-resident company rendering services as per provisions of s. 44BB to the ONGC and imposed the income-tax thereon. 5.1 In the light of view taken by the Hon'ble jurisdictional High Court in their aforesaid decision, especially when the ld. AR accepted the position that the issue is squarely covered by the aforesaid decision while no other contrary decision was brought to our notice nor the ld. AR placed any material before us, controverting the aforesaid findings of the DRP and the AO, we have no hesitation in upholding the findings of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on higher used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, (c) received by the assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on higher used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India and (d) deemed to be received by the assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on higher used, or to be used, in the prospecting for, or extraction or production ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
