𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗗𝗦 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 The Tribunal held: "TDS deposited to the Income Tax Department in relation to payments made to foreign service providers over and above the invoice value is not liable to service tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. International Flavours & Fragrances India Pvt. Ltd. ⚖️ 𝗜𝘀𝘀𝘂𝗲: Whether service tax is payable on the TDS portion of foreign currency remittance? 𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The demand for service tax was confirmed by the Adjudicating Authority.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that TDS paid for Income Tax purposes is not part of the taxable service consideration under Section 67(1)(a) of the Finance Act, 1994. Referring to Adani Bunkering Pvt. Ltd., it confirmed that service tax is not payable on TDS, setting aside the demand and allowing the appeal.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. International Flavours & Fragrances India Pvt. Ltd. vs. Commissioner of GST & Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 55308 of 2023 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 31 January 2024

📜 This ruling confirms that TDS paid to the Income Tax Department does not attract service tax under the Reverse Charge Mechanism.