Dear Members,
I seek your valued opinion on the following.
There are two contracting parties, say X Ltd. and Y Ltd. X Ltd outsources some activities to Y Ltd. The activities are taxable services under Service Tax Laws. The agreement contains a clause that agreed rate is inclusive of all taxes.
How ever, while entering into the contract, both the parties were under bonafide belief that Service Tax is not applicable.
Whether, considering the bonafide belief of the contracting parties, it cna be construed that the agreed rate is exclusive of Service Tax. Is there any decided case on such issue?
