9911796707
TMI Blog2018 (2) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... ngineering consultancy services and technical assistance in various road related projects. The appellant have a small establishment in India, and are registered with the Department for discharging tax liability on considerations which are accruing to LIL in terms of the said agreements with Indian clients. The dispute in the present appeal relates to the liability of the appellant for service tax on 2 counts:- (a) Certain expenditure shown in the books of the appellant with reference to income and expenditure of projects in India is sought to be taxed as a consideration for consulting engineer service (b) Tax liability under manpower supply in respect of staff deputed by LIL to India to render the services in terms of the agreement with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from Indian clients in pursuance of various consultancy agreements are fully credited to LIL, Canada directly. The appellant has no role in execution of the agreement, rendering of service or receipt of consideration for such service. The full consideration, which is accounted towards the receipt from Indian clients are shown in their accounts in India, which is also captured in the accounts of LIL, Canada. This accounting is followed mainly to satisfy the local Income tax law for tax liability. For Service Tax purpose, they are neither rendering any service nor received any consideration towards such service. Since, they have discharged Service Tax as mandated by the agreement between the Indian clients and LIL, Canada, the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave heard both the sides and perused the appeal records. On the first point, we note that the appellants paid Service Tax on the full consideration shown to have been paid by the Indian service recipient to LIL, Canada, which is captured in the accounts of the appellant and further adjusted in the accounts of LIL, Canada. This fact has not been disputed. In fact, this is recorded in the show cause notice that the income which is shown in the accounts of the appellants were subject to Service Tax as consultancy engineering service. However, certain expenditure shown in the same books of accounts under the category of consultancy fee and technical fee, which is again reflected in the accounts of LIL, Canada, was sought to be taxed on reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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