Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Service Tax Demand Against Port Trust

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 206
  • 0 Comments
  • Subscribe to this entry
  • Print
  • Report this post

Arrangement with contracting-party a 'joint-venture'; Royalty towards port-exploitation rights not 'service' consideration - CESTAT

  • CESTAT quashes service tax demand against Port Trust in respect of leasing of land & water front to South West Port Ltd (SWPL) towards construction of jetty for purpose of loading and unloading of cargo from ocean going vessels
  • Perusing the agreement between both parties, CESTAT notes that besides leasing, assessee also granted permission to SWPL to conduct port operations and received license fees / royalty towards the same; States that arrangement between assessee & SWPL, being a public-private partnership, is in nature of joint venture whereby strategic, financial and operating decisions are to be unanimously agreed upon by both co-venturers
  • Observes, “….activities undertaken by a partner/co-venturer for the mutual benefit of the partnership/joint venture cannot be regarded as a service rendered by one person to another for consideration and therefore cannot be taxed.”
  • Holds that Explanation 3 in definition of “service” in Section 65B(44) under Negative List regime which treats unincorporated association or body of persons and members thereof as distinct persons, does not have effect of rendering activities undertaken by partner / co-venturer (that are actually for his own benefit) as being a service rendered to partnership (join venture) : Mumbai CESTAT
Rate this blog entry:
0
Trackback URL for this blog entry.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Thursday, 27 July 2017

Like us on facebook

Twitter Feed

ConsultC Session organised by Builders' Association of India on RERA and GST at Mumbai https://t.co/D6bjdqk54I
ConsultC The word is spreading on https://t.co/QI70LPC81h
ConsultC GST - Impact on Projects, Mumbai https://t.co/6vST83thsK

Address

Address:
304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
Gujarat-380054
Tel:
+91 - 079 - 40032950
E-Mail:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Website:
www.consultconstruction.com

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.