CESTAT held that service tax cannot be levied on telephone ...

Tribunal Rules Phone Bill Waivers to Employees Not Subject to Service Tax as They Constitute Discounts, Not Taxable Consideration.

January 29, 2025

Case Laws Service Tax AT

CESTAT held that service tax cannot be levied on telephone charge waivers (CFA) provided by appellants to employees. The tribunal determined that free allowances constitute discounts/concessions rather than taxable consideration since benefits accrue to employees (service recipients) rather than the appellant (service provider). The bench rejected the department's best judgment method and assumptions-based tax computation, noting the show cause notice was vague regarding specified services. Following valuation principles, only consideration flowing from service recipient to provider is includable in gross taxable amount. Goodwill cannot be arbitrarily valued for taxation. The tribunal concluded that absent actual consideration received, CFA discounts fall outside service tax purview. Appeal allowed with full relief to appellant.

View Source

← Previous Next →

CESTAT held that service tax cannot be levied on telephone ...

Tribunal Rules Phone Bill Waivers to Employees Not Subject to Service Tax as They Constitute Discounts, Not Taxable Consideration.

January 29, 2025

Case Laws Service Tax AT

You may also like:

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

Levy of service tax on Directors Salary - The Appellate Tribunal ruled in favor of the Appellant, emphasizing that remuneration paid to whole-time directors, who are...

The Appellate Tribunal examined the classification of services provided by the appellant to overseas educational institutions, determining whether they constituted...

AAR ruled that recoveries from employees for canteen and transportation services constitute taxable supply under GST. The services are considered incidental to business...

The tribunal held that service tax under reverse charge mechanism is not leviable on commission paid to directors treated as salary in the company's books of accounts...

The CESTAT allowed the appeal concerning advisory services provided by appellant to JCB UK, determining these constituted export of services under Rule 6A of Service Tax...

Refund claim of service tax paid on cancelled transactions - Post GST era - Rejection of refund under Rule 6(3) of Service Tax Rules read with Sec 142(5) of CGST Act -...

CESTAT, an Appellate Tribunal, considered the levy of service tax on air and ocean freight charges collected before and after 01.07.2012. The issue was whether these...

Taxability - advance payments - The Tribunal observed that the appellant failed to issue invoices/bills upon receiving payments for the services provided, as mandated by...

The Tribunal held that the appellant rightly issued credit notes to government entities that refused payment of consideration and service tax, allowing adjustment of...

CESTAT ruled that allocation of head office administrative expenses from SCB-UK to Indian branches does not constitute taxable business support services under Finance...

Additions (Benefit) u/s 28(iv) - Expenditure incurred by the HO for salary paid to the expatriate employees for rendering services to PE - The tribunal upheld the...

The case involved the export of services related to sales promotion of goods in India to recipients outside India. The Appellate Tribunal held that since the appellant...

The case involved determining whether services provided to overseas clients constituted export of services u/s Finance Act, 1994. The Tribunal held that services falling...

CESTAT adjudicated a service tax dispute involving import of services, finding no substantive evidence that foreign currency payments constituted taxable imported...

Quick Updates: