As per standard practice, the service tax\/GST department called for information from mining department of state (gujarat) which in turned provided list of firms (quarries) in whose name royalty is paid. Accordingly the service tax\/GST department issued SCN and passed order levying SERVICE TAX ON RCM on royalty paid as per list provided by mining department .<\/p>\n
In given case, department had issued SCN and passed order in the name of \u201cA\u201d quarry who had taken land on lease for quarry business from mining department of the state.<\/p>\n
But in actual \u201cA\u201d quarry had sub-leased the whole land to \u201cB\u201d quarry who had paid royalty directly to mining department and also claimed royalty expenditure. \u201cA\u201d quarry had neither paid any royalty nor claimed such royalty expense in books.<\/p>\n
Only because \u201cA\u201d quarry had originally leased land from mining department, there name was forwarded to service tax\/GST department.<\/p>\n
What stand should be taken by \u201cA\u201d quarry to avoid service tax demand. I am aware that whether royalty is tax or not question is pending before 9 judge bench of SC. What other stand can be taken in given facts.<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[340],"qa_category":[69],"qa_tag":[650,335,646],"class_list":["post-28456","qa","type-qa","status-publish","hentry","qa_expert-advocate-c-b-thakar","qa_category-gst","qa_tag-royalty","qa_tag-service-tax","qa_tag-service-tax-on-royalty"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/28456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=28456"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=28456"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=28456"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=28456"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=28456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}