The Ahmedabad bench of CESTAT in the case of FORWARD RESOURCES PVT LTD Vs. C.C.E. & S.T.-SURAT-I {Service Tax Appeal No.10024 of 2020} has ordered that service tax demand can not be confirmed merely on the basis of Form 26AS. In the last so many years we have seen so many notices issued by the department merely on the basis of the Form 26 AS and even allegedly imposed heavy penalties due to differences in service tax data and income tax data . However proper records , supportings and proper reconciliation has been proved to boon in all those such cases .Coming to the judgement , some relevant observations of the Tribunal has been given below for better understanding of the topic:

“We also find that in the present matter for confirmation of service tax demand Ld. Commissioner also relies upon the TDS /26AS Statement. The said statement under provisions of Income Tax Act, 1961 is an Annual Consolidated tax statement. Income tax and service tax are two different/ separate and independent Acts and their provisions operating in two different fields. Therefore by relying the 26AS /TDS Statement under the Service Tax Act, demand of service tax cannot be made. We also find the support from the decision of M/s Ved Security Vs. CCE, Rachi -III 2019(6) TMI 383 CESTAT, Kolkata wherein it was held that the value of taxable services cannot be arrived at merely on the basis of the TDS statements filed by the clients inasmuch as even if the payments are not made by the client, the expenditure are booked based on which the form 26AS is filed, which cannot be considered as value of taxable services for the purpose of demand of Service tax.”

The judgement can be accessed at :

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