The Appellate Tribunal held that the term "One Time Upfront ...

Company not liable for GST on one-time upfront lease charges paid in installments.

December 6, 2024

Case Laws     Service Tax     AT

The Appellate Tribunal held that the term "One Time Upfront Amount" (referred to as premium, salami, cost, price, development charges, etc.) relates to a one-time payment made at the beginning of a lease, but it does not necessarily mean payment in one lump sum. The nature of such payments is that they are paid only once during the lease period, as opposed to recurring lease rent. The Revenue's contention that payment in installments cannot be considered a "One Time Payment" was incorrect. Consequently, the Revenue's appeal was dismissed.

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