Friday, 20 September 2013

Larger Bench decision in the case of free supplies for construction services

 
This Tax Alert gives an update on the recent ruling of the Larger Bench of the Delhi Tribunal in the case of Bhayana Builders (P) Ltd. & Ors. v CST, Delhi & Ors.
The issue for consideration before the Larger Bench of the Delhi Tribunal was whether the value of goods supplied free of cost by the service recipient and used in the provision of construction service, should be included in the gross amount charged, for service tax valuation purpose, under section 67 of the Finance Act, 1994.
The Larger Bench upheld the non-taxability of the free materials provided by the service recipient towards construction services and concluded that such supplies would not form part of the "gross amount charged" within the meaning of section 67 of the Finance Act, 1994.

No comments:

Bombay High Court Clarifies Tax Exemption Eligibility for Venture Capital Funds

  In a significant ruling, the Bombay High Court has reaffirmed that a Venture Capital Fund (VCF) registered with SEBI is entitled to claim ...