We are a 100% EOU manufacturing auto components and exporting to USA. We have a payment terms of DA 60 days with our customer and have shipment terms of CIF Detroit. In June 2006, some of our components were found to be rusty and our customers in USA got the consignment sorted at their plant in USA by a third party sorting agency and deducted the sorting cost amount from payment due to us. Since the rust problem persisted, our customers asked us to directly contract the sorting agency for sorting at our customer's plant in USA, all our consignments after arriving in the plant but before accepting the consignment. The sorting agency directly billed us and we paid them a total of almost 37 lacs in 2006-2007 and 2007-2008 periods. The sorting agency does not have any office in india and all the sorting was done in the USA. Are we liable to pay service tax on the sorting service that was provided in the USA on goods that were in USA at the time of sorting just because we have paid for that service? Looking forward to the experts' opinions at the earliest.

I have customer a Pvt Ltd Company making payments regularly on a contract basis for maintaining,servicing various software and hardwares to individual consultants.All individuals are being paid around Rs 5,00,000/- to 6,00,000/- every year.

Can the company deduct TDS at 2.00 % plus surcharge total 2.06 %

We have just oral contract nothing is reduced into writing.

With regards
Kashyap Vyas

Sir,

As per sec 40(a)(ia)

Any interest, commission or brokerage, rent,royalty,fees for professional services or fees for technical services or contract money which is PAYABLE, to a resident
on which tax is deductible at source under Chapter XVII B and such tax has not been deducted or, after deduction, has not been paid during the pervious year, or in subsequent year before the expiry of the time precribed under section200(1), shall be disallowed as a deduction in computing the income from business or profession.

My quary is that if the expenses is actully paid during the financail year without deducting Tds then also Sec 40(a)(ia) is applicable.

what is the time limit for taking cenvat credit in central excise

If Mr. A is a Goods Dealer and He have 2 business places one at ABC and other at XYZ.

Mr. A sends His Stock of Goods From place XYZ to Place ABC by a transporter who is not a registered transporter, he just a person having a personal carrier for his personal use.

But then also he carries goods of Mr. A from XYZ to ABC place for Rs. 15,000/-.

The Distance between place XYZ & ABC is 99 KMS.

Is Mr. A liable to pay Service Tax???????

If Yes or No, under what rules(Sec.) of Service Tax Act and circumstances and at what Rate?????

Hi All.

A foreign investor is investing in Hotel. The hotel has decided to sell gift vouchers to its investors.

What are the FEMA related implications on such sales?

sir if we paid More then Rs. 20000/-to contractor or transporter it will allowed or not, as this is natural if we booked an transport he will take advance as per kilometer

Hello.
Recently there was a notification on 20th May 09, amending earlier notification issued on 03rd March09 and providing exemption from service tax on service consumed for authorised operation carried on by a SEZ developer.

Now my question is this what about the taxability of services provided in between this period i.e.(03.03.09 to 20.05.09).How it will be treated.Whether by way of refund or is it exempted.

Thanks in advance.

A company made provision for some expense say some contractors bill on 31st Mar 08 or work done by contractor & bill against it is received in June 08
a) Shd TDS be deducted on date of Provisioning i.e 31st Mar & deposited accordingly or at the time of actual receipt of bill?
b) If booked on 31st Mar 08 itself and also deposited, but in June bill is for different amt in such a way that TDS is deposited more by Rs 100000/-. What should Company do now, to get the amt refund?

Hi,

A company has got a LAN Internet connection from Sify for its office and paying quarterly bills of around Rs 250000/-.Need it to deduct the TDS over the amt being paid to service provider?
ANy case law or notification will help.

Pls keep the query open unless you are sure of your Reply.