#cum-tax benefit

CESTAT Hyderabad has ruled that service tax must be calculated on the gross amount received by the service provider, inclusive of tax, and that TDS deducted by clients cannot form part of the taxable base. This clarifies a critical compliance point for professionals in architecture, engineering, and project management, ensuring they are not penalized for tax deductions made by their clients under income tax rules.

CESTAT Bangalore rules that service tax under 'manpower recruitment service' applies solely to fees tied to actual hiring, exempting infrastructure or participation charges. The ruling clarifies the taxability threshold for educational institutions conducting campus placements, impacting compliance for similar entities.

CESTAT Chennai ruled that service tax liability for real estate agent services must be calculated on the gross amount inclusive of tax under Section 67(2) of the Finance Act. The tribunal remanded the case for fresh adjudication, allowing the appellant to submit additional evidence, clarifying the computation methodology for tax professionals and real estate service providers.