Service tax

Hariprakash (MBA) (25 Points)

23 July 2014  

A joint venture was formed between an Indian Company and a foreign MNC for taking up a road contract in India. The Indian company had agreed to pay a fixed percentage as commission to the foriegn company,  if the work is awarded to the JV.

1)Will this come under the purview of service tax?

2) What are the procedures to be followed to transfer the amount to the foreign company?

3) Should TDS be deducted from the transaction? if yes, how can the foreign company claim this?