Consultation fee from japan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Dear Sir,

One of our client, an Indian company received fixed amount $8,500 per month from its holding company Japan .It is a type of Marketing survey Fee. As per company explanation to us this will repeat for next 12 months.So my doubt is that apart from transfer pricing procedure is there is any effect of Service Tax,TDS,Advance Tax applicability.

I am expecting an explanation soon.

CA Chirag Haraniya

CA Chirag Haraniya (Expert)
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19 November 2013 Dear Friend,

TDS:
TDS will not be applicable on Income. If there is any withholding tax provisions are there in Japan then confirm with your holding company whether they have deducted any tax, as you can claim in your tax return after grossing up income.

Advance Tax:
Advance tax will required to be paid as per normal provisions of income tax.

Service Tax:
Generally export services are exempt from service tax. Still i suggest that confirm in Marketing Services & Negative list. As i do not have much knowledge in this area.

Regards,
Chirag M. Haraniya

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Thank You Sir

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