Import of service from germany
This query is : Resolved
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 ?
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 ?
04 May 2015
1. Service tax payable by service receiver Indian company under RCM.
2. TDS applicable u/s 195.
2. TDS applicable u/s 195.
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