Taxability of expenditure in foreign currency in case of M/s ONGC Videsh Ltd - CBEC Clarifies
CBEC was burdened with a query from a field formation, which expected a clarification in this regard from the Board.
After examining the query, Board observed that the matter that has been referred in the said letter is a question of fact which has to be examined in the light of overseas contracts, joint venture agreements, mandate of OVL and its overseas formations etc.
The Board clarifies that it is not supposed to determine such complex questions of facts on the basis of a short summation of facts that have been communicated by the field. The Commissionerate is in possession of all the facts of the matter and best equipped to determine such issues. Therefore, it directed the jurisdictional officer to go ahead in the matter as deemed appropriate in terms of law.
Board directs that in future, issues relating to question of facts must not be forwarded to the Board and thus keeping the matter pending on this ground alone.
CBEC Letter F.No.137/147/2010 - Service Tax : Dated : July 11, 2011