Charging of salary & management fee from subsidiary
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 September 2016
Hi ,
Please let me know applicability of service tax in the below mentioned matter:
The holding company is 100% EOU in India, which have its channels in UK & USA. For certain processes, employees are hired at holding company for working exclusively for channels.
Now, the holding co wants to charge 1) salary(of such employees) ,and 2) management fee(at ceratain percentage of salary) from the channels on monthly basis.The realisation will be made in foreign currency by subsidiary.
Will it attract the liability of service tax in any way? what is the way out?
Please let me know applicability of service tax in the below mentioned matter:
The holding company is 100% EOU in India, which have its channels in UK & USA. For certain processes, employees are hired at holding company for working exclusively for channels.
Now, the holding co wants to charge 1) salary(of such employees) ,and 2) management fee(at ceratain percentage of salary) from the channels on monthly basis.The realisation will be made in foreign currency by subsidiary.
Will it attract the liability of service tax in any way? what is the way out?
Arun Kumar Singh
(Expert)
17 September 2016
The service tax will not be attracted in this transaction.
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