Appellant paid service tax on entire value of cleaning services, ...

Service Tax on Cleaning Services: Deductions Disallowed, Late Filing Penalty Upheld, No Extended Limitation Period.

September 28, 2024

Case Laws     Service Tax     AT

Appellant paid service tax on entire value of cleaning services, but for remaining services paid tax only on margin money after deducting expenses. Commissioner disallowed expenses, stating appellant did not produce evidence of not receiving amount over shown receipts. Appellant incurred expenses for services other than cleaning, not as pure agent. Gross amount received is taxable value as per Section 67, not permissible to deduct expenses. No suppression with intent to evade tax established in show cause notice or orders to invoke extended period of limitation. Late payment fees upheld for delay in filing ST-3 return, being legal obligation unrelated to tax evasion. Demand of service tax, interest and penalties set aside on limitation grounds, but penalty for late return filing upheld.

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