Bollywood actress Katrina Kaif has got relief in the Rs.2.79-crore service tax as a court case has ruled That has been discharged this liability by her agent for the the modeling assignments she has done.
"In this case, appellant (Katrina) Matrix has appointed her as her agent to discharge service tax liability on her Behalf and the same has been discharged by Matrix," said a recent ruling by the Mumbai bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The ruling follows an appeal by Katrina R Turcotte (Katrina Kaif) against an order of the Service Tax Commissioner asking her to clear service tax liability of Rs.2.79 crore as classified under the head 'Business Auxiliary Service'. The amount included an interest and penalty of Rs.33.68 lakh.
The service tax department had slapped the duty on her for Providing services to various companies for Promoting products through modeling assignments through advertisement films, TV commercials and still photography.
Katrina's lawyers said she had discharged That the service tax liability through her agent Matrix India Entertainment Consultants.
The Revenue Department, However, That the tax liability contended was discharged under 'Advertisement Agency Service' head and not under 'Business Auxiliary Service' category and hence was liable to pay Katrina the service tax.
The court ruled That "by mere paying the service tax liability under wrong head That does not meant service tax liability has not been discharged .... We hold that the appellant has discharged the service tax liability through her agent ...."
"In this case, appellant (Katrina) Matrix has appointed her as her agent to discharge service tax liability on her Behalf and the same has been discharged by Matrix," said a recent ruling by the Mumbai bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
The ruling follows an appeal by Katrina R Turcotte (Katrina Kaif) against an order of the Service Tax Commissioner asking her to clear service tax liability of Rs.2.79 crore as classified under the head 'Business Auxiliary Service'. The amount included an interest and penalty of Rs.33.68 lakh.
The service tax department had slapped the duty on her for Providing services to various companies for Promoting products through modeling assignments through advertisement films, TV commercials and still photography.
Katrina's lawyers said she had discharged That the service tax liability through her agent Matrix India Entertainment Consultants.
The Revenue Department, However, That the tax liability contended was discharged under 'Advertisement Agency Service' head and not under 'Business Auxiliary Service' category and hence was liable to pay Katrina the service tax.
The court ruled That "by mere paying the service tax liability under wrong head That does not meant service tax liability has not been discharged .... We hold that the appellant has discharged the service tax liability through her agent ...."
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