Service tax

Querist : Anonymous (Querist) 09 August 2010 This query is : Resolved
Respected sir
contract is signed in 2003 which contain term inclusive of all taxes .in yr 2004 service tax comes in existance.claimant claim the reimbusment of service tax on account of service tax not in existance at the time of contract mattter is reffered to Arbitrator Arbitrator pass award that Both parties bear 50% of service tax we want to challange the award in district court what is our chances of winning whether are we liable to bear service tax ,AT THE TIME OF CONTRACTservice tax not in existance

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s.subramanian (Expert) 09 August 2010
yes. arbitrator has given a reasonable award.

C M Sharma (Expert) 09 August 2010
It needs to be seen as to what does the Contract say about taxes and levies and rates of such taxes / levies and future levies /Taxes.

If it is silent on new taxes/ levies, then there could be a case to consider the Contract value as the cum service tax value.

Matter could also be agitated before the Service Taxes Authorities to determine as to what is the total tax liability determined?

soumitra basu (Expert) 27 August 2010
According to my opinion:-
You should file a petition before the appropriate court that at the time of signing contract there was no presumption of implementation of service tax and as such on that point the particular term is ab-initio void. The condition has to be challenged. I think you have a good case to win at High Court leve.

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