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Tds & service tax on remittance to foreign consultants

This query is : Resolved 

07 October 2015 Dear sir,

A Manufacturing Company in Auto Parts, already in Excise... have appointed a foreign Consultant cum Commission agent and agreed to pay...

Monthly USD 1000

10% commission on Invoice shipment Price

Reimbursement of Travelling & Hotel other expenses

Sir, Please state us applicability of TDS & Service tax on the said Transaction.

Thanks in advance & awaituing for Reply

Suresh Somaiya
9321745765

07 October 2015 No TDS applicable if he is non resident and rendering service out side India.
No service tax also applicable if service is rendered outside India.

08 October 2015 Seetjaraman Sir, .. Thanks for the prompt reply..

We appreciate your Support and agreed for Non applicability of Provisions of TDs..

However, Regarding Service Tax, The provisions of import of Services i.e. The service rendered by The Persons outside India to the Concern situated in India may attract the Service Tax Read with THE TAXATION OF SERVICES (PROVIDED FROM OUTSIDE INDIA AND RECEIVED IN INDIA) RULES 2006, I think the service receiver has to pay tax for services availed in India...

Sir requested to have your expertise view on the same




08 October 2015 As per POP of service Rules 2012 9(C) being agency service rendered out side India is not taxable. You were quoting old Rule.

08 October 2015 OHHH Thanks Once again sir,,,




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