04 May 2015
Type and terms of service - designing of new furniture collection on which he charges development fee in three steps. The development fee is a part of an advance as royalty(3%), as to the usual terms between service provider and Indian company
As per invoice - MWST 19% (Tax not applicable as per indo-German tax agreement) Service provider says that he is not responsible to pay any Indian or local tax charged to Indian Company and 100% taxable in germany .
Query 1. DOES INDIAN COMPANY LIABLE TO PAY ANY SERVICE TAX UNDER REVERSE CHARGE MECHANISM? 2. DOES ANY TDS WILL BE DEDUCTED ?
CAclubindia
