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?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- LIABILITY ADJUSTMENT
- ITR-3 File/Error Found
- Due Date Clarity
- Accounting with Claude
- TDS _Long term Capital Gain ref.sec 214 Table 2
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
