Duttmenon Dunmorrsett v. UOI & Ors.

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The Tax Publishers 2018 TaxPub(ST) 1550 (Del-HC) Duttmenon Dunmorrsett v. UOI & Ors. SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006 --Value of taxable service--Inclusion of legal services rendered to third party clients in the assessable value of servicesValidity of----In terms of rule 5(1), reimbursements of payment made to third parties were not subject to service tax levy.--Assessee was a law-firm providing legal consultancy services. Revenue raised demand of service tax on the payments made to senior counsel for rendering legal services to third party clients. Assessee contended that in terms of rule 5(1), reimbursements of payments made to third parties were not liable to service tax. *Held:* In view of High Court decision in case of Intercontinental Consultants & Technocrats (P) Ltd. v. Union of India 2013 (29) S.T.R. 9 (Del.), Rule 5(1) revenue could not have included the payments received as reimbursements, payments made by the assessee or received through reimbursements towards senior counsel fee, in the value of services rendered by it. Finance Act, 1994 Section 67 Service Tax (Determination of Value) Rules, 2006 Rule 5 *Followed:*Intercontinental Consultants and Technocrats (P) Ltd. v. UOI. & ANR. 2013 (29) S.T.R. 9 (Del.) SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2018 TaxPub(ST) 1550 (Del-HC)

Duttmenon Dunmorrsett v. UOI & Ors.

SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006

--Value of taxable service--Inclusion of legal services rendered to third party clients in the assessable value of servicesValidity of----In terms of rule 5(1), reimbursements of payment made to third parties were not subject to service tax levy.--Assessee was a law-firm providing legal consultancy services. Revenue raised demand of service tax on the payments made to senior counsel for rendering legal services to third party clients. Assessee contended that in terms of rule 5(1), reimbursements of payments made to third parties were not liable to service tax. Held: In view of High Court decision in case of Intercontinental Consultants & Technocrats (P) Ltd. v. Union of India 2013 (29) S.T.R. 9 (Del.), Rule 5(1) revenue could not have included the payments received as reimbursements, payments made by the assessee or received through reimbursements towards senior counsel fee, in the value of services rendered by it.

Finance Act, 1994 Section 67

Service Tax (Determination of Value) Rules, 2006 Rule 5

Followed:Intercontinental Consultants and Technocrats (P) Ltd. v. UOI. & ANR. 2013 (29) S.T.R. 9 (Del.)