Import of Service
This query is : Resolved
03 December 2010
I require your opinion of below mention query
Say we Imported Service ( BUSINESS SUPPORT SERVICE) from A Ltd on 1.4.2010 amount to USD 1000 same is accounted in our books by debited to Expenses Rs. 45,000/- (since exchange rate is Rs. 45/- per USD. This expenses also liable to With holding tax say at 10% same is debited to A Ltd on 1.4.2010 On 1.6.2010 we made the payment to A Ltd that time exchange rate is Rs. 49/- per USD so we remitted to them 900 UDS (Rs. 44100/-)
My Question is that
1. Is we require to pay service tax on accrued amount (in our Eg. Rs. 45000/-) or on actual paid amount (Rs. 44100/- Actual paid + Rs. 4500/- Withholding tax paid)?
2. Is we require to pay proportionate Service tax on payment of withholding tax? (in our Eg on Rs. 4500/- Withholding tax)
Say we Imported Service ( BUSINESS SUPPORT SERVICE) from A Ltd on 1.4.2010 amount to USD 1000 same is accounted in our books by debited to Expenses Rs. 45,000/- (since exchange rate is Rs. 45/- per USD. This expenses also liable to With holding tax say at 10% same is debited to A Ltd on 1.4.2010 On 1.6.2010 we made the payment to A Ltd that time exchange rate is Rs. 49/- per USD so we remitted to them 900 UDS (Rs. 44100/-)
My Question is that
1. Is we require to pay service tax on accrued amount (in our Eg. Rs. 45000/-) or on actual paid amount (Rs. 44100/- Actual paid + Rs. 4500/- Withholding tax paid)?
2. Is we require to pay proportionate Service tax on payment of withholding tax? (in our Eg on Rs. 4500/- Withholding tax)
03 December 2010
For query one. pls re-think about TDS. Since, normally foregin co. will ask the payment amount and not the invoice less taxes. if it so pls pay only on payment amount. For query two, not required to do so
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
- Fixe term employment
- Is any professional CA is here please reply
- Putting a heading on received mail
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Experts need help
- Section 50-fixed asset-->building ceases to exist
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
