Applicability of service tax on reimbursement
This query is : Resolved
17 March 2011
Dear All
We have service tax registration under- Business Auxiliary services, Online Information Data, Information Technology Software Services & we are Indian Company.
We took consultancy services from India & we paid the bill alongwith service tax. later on we took credit also. Now we are recovering these consultancy charges (Net of service tax) from company situated in US which is a group company. The logic is that consultancy services were acquired for them.
In such situation, my query is do we need to pay service tax on that or do we need to charge service tax to the US based group company?
We have service tax registration under- Business Auxiliary services, Online Information Data, Information Technology Software Services & we are Indian Company.
We took consultancy services from India & we paid the bill alongwith service tax. later on we took credit also. Now we are recovering these consultancy charges (Net of service tax) from company situated in US which is a group company. The logic is that consultancy services were acquired for them.
In such situation, my query is do we need to pay service tax on that or do we need to charge service tax to the US based group company?
17 March 2011
If you received consultancy service for your US associate, prima facie the cenvat credit is inadmissible as it is not an input service of your business. You can develop an argument that you are providing the output service to the US part which is export of service and the service received from Indian company is an input service.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- FORM 26A APPLICABILITY
- Annual return in Gst
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
