Share with your friends

India: Service tax liability and “revenue neutrality” defense

India: Service tax liability, "revenue neutrality"

The Customs, Excise and Service Tax Appellate Tribunal issued its findings in a matter concerning the imposition of service tax on “live feeds” of professional cricket matches over various TV channels.


Related content

The taxpayer had failed to pay the service tax on the compensation remitted to the service providers (nonresidents). On assessment of the service tax liability, the taxpayer countered that the service tax would be available for collection as a CENVAT credit under a “revenue neutrality” position.

The tribunal held that if it were to accept the argument of “revenue neutrality,” then the entire system of paying taxes on a reverse charge basis would be futile.

The case is: BCCI v. Commissioner of Service Tax

Read an August 2018 report [PDF 564 KB] prepared by the KPMG member firm in India

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal