Topic
The Tribunal confirmed that fees collected by STPI for certifying SOFTEX forms and issuing No Objection Certificates constitute a taxable business support service under the Finance Act, 1994. This makes such charges liable to service tax, affecting all software parks and entities seeking SOFTEX certification.
CESTAT Chandigarh holds that when a freight forwarder purchases ocean freight on a principal-to-principal basis and resells it with a markup, the transaction does not constitute a taxable 'Business Support Service' under the Finance Act, 1994. This clarifies the scope of taxable auxiliary services in logistics and benefits freight forwarders operating as principals, not agents, in international shipping arrangements.
CESTAT Chennai rules that revenue-sharing payments from licensees operating food and beverage outlets within a property do not constitute taxable Business Support Services under the Finance Act, 1994. This clarifies a critical boundary for mall operators and entertainment complexes, shielding them from service tax demands on ancillary commercial partnerships that lack direct operational control or support functions.