The CESTAT held that the advertisement charges collected by the ...

Franchise service ad charges reimbursed by franchisees can't be included in gross value as per CESTAT ruling. Revenue's case unconstitutional.

Case Laws Service Tax

August 1, 2024

The CESTAT held that the advertisement charges collected by the appellant as reimbursement expense cannot be included in the gross value of franchise service. The revenue's case was based on Rule 5(1) and 5(2) of the Service Tax (Determination of Value) Rules, 2006, which were held unconstitutional and ultra vires the Finance Act, 1994. The advertisement expenses were ultimately borne by the franchisees as part of their business expenses and cannot be included in the gross value of franchise service. Consequently, the impugned order allowing the revenue's appeal was set aside, and the appeal was allowed.

View Source

← Previous Next →

The CESTAT held that the advertisement charges collected by the ...

Franchise service ad charges reimbursed by franchisees can't be included in gross value as per CESTAT ruling. Revenue's case unconstitutional.

Case Laws Service Tax

August 1, 2024

You may also like:

Exemption from GST - intra-state supply of services - Services by way of access to a road or a bridge on payment of toll charges falling under the heading 9967 -...

Valuation - As per Section 67 of Finance Act, 1994 only that value which is charged by the service provider to the service recipient shall be considered the gross value....

Valuation - Service tax short paid by not including gross amount charged for services rendered. Gross amount charged defined in Section 67 does not expand meaning to...

Valuation - C&F agent service - inclusion of reimbursement of expenses - charges collected for activities like loading, unloading, etc are includable in the assessable...

Determination of the taxable value for payment of service tax on reverse charge basis by the service recipient in respect of Goods Transport Agency (GTA) Services. The...

Valuation - The electricity charges reimbursed to the service provider by the service recipient not includible in gross value of renting of immovable property service.

Taxable value determination for reseller agreement - repatriated amount after deducting profit margin and costs incurred in reselling IT-enabled services not correct...

Franchisee service - registration of website domain names - Reverse charge mechanism - no service tax is leviable under the franchise service - AT

Recovery of service tax u/s 73(2) of Finance Act, 1994 and section 174 of CGST Act, 2017 with interest and penalty was challenged. The issue pertained to classification...

Valuation of service tax - wharfage charges under Port Service - In the present case, there is no dispute that the gross amount charged by EBTL to ESTL is equivalent to...

The High Court held that the value of free diesel supplied by the service recipient to the Goods Transport Agency (GTA) service provider cannot be included in the...

Value of supply of free material should not be included for arriving at gross value for charging service tax liability - AT

Leviability of service tax - franchise service - franchisee was obliged not to open any school with any name in the existing premises/building operational area of the...

Valuation - Composite services - GTA Services on reverse charge basis - non-inclusion of various expenses in the taxable value - The Tribunal found that the services...

Service tax refund claim allowed by Appellate Tribunal for additional service tax paid on charges recovered from customers. Appellant issued credit notes to customers...

Quick Updates: