Applicability of Service Tax between closely held companies
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2011
HI,
Please let me know if service tax is applicable between closely held companies, wherein one company is giving an order to its sister concern with 0% margin.
The company getting the order is inturn paying the amount to a sub-contractor.
Please let me know if service tax is applicable between closely held companies, wherein one company is giving an order to its sister concern with 0% margin.
The company getting the order is inturn paying the amount to a sub-contractor.
27 June 2011
According to me the service tax is levy only when any taxable service is provided.
Dear Friend please mention the kind of order.
Dear Friend please mention the kind of order.
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2011
Thank you.
It is a work order for construction of a building.
Say there are two closely held companies, say A & B. 'C' is an outside company. 'A' through company 'B' allots a contract to 'C'. Therefore, when the billing takes place, 'C' would bill 'B' and later 'B' bills 'A' with the same amount.
Company 'B' does not have a mark-up.
Therefore, would service tax be applicable between 'A' and 'B'. If yes, can any exemption be claimed on the same?
It is a work order for construction of a building.
Say there are two closely held companies, say A & B. 'C' is an outside company. 'A' through company 'B' allots a contract to 'C'. Therefore, when the billing takes place, 'C' would bill 'B' and later 'B' bills 'A' with the same amount.
Company 'B' does not have a mark-up.
Therefore, would service tax be applicable between 'A' and 'B'. If yes, can any exemption be claimed on the same?
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