Revenue sharing arrangements are liable to service tax: AAR

Advertisement CA Saurabh Chokhra Brief of the case : In the above cited AAR ruling it was held that a revenue sharing arrangement by creating a partnering person shall be liable to service tax if the partners are providing taxable service to one another in execution of partnering purpose even if the purpose of creating partnering person is non-taxable. Facts of the case: M/s Choice Estates and Constructions Limited (applicant) is a Public Limited Company having its registered office at Kochi. Applicant proposes to enter into a Partnering Agreement with Choice Foundation, a society registe...