intercorporate transaction

This query is : Resolved

DEBJIT MAJUMDER (Querist)
Follow

31 May 2010 ACB Co. Ltd and XYZ Co. Ltd have a common management. since ABC co is a huge profit making co,management decided to make a intercorporate transaction between such companies.and as a result XYZ Ltd raised an invoice on ABC Ltd for consultancy Charge and service tax added on consultancy fees. Since Service tax is payable on payment basis,management decided that ABC Ltd will not pay such amount and liability will arise in the book only,and accordingly no service tax have to pay.
Whether decision of the management is correct?
Whether any provision is there in this regard?

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

02 June 2010 With respect to associated companies, the tax is payble not on receipt but on the date of booking. You are liable to pay ST along with interest.

DEBJIT MAJUMDER

DEBJIT MAJUMDER (Querist)
Follow

05 June 2010 But whether there is any specific circular in this regard?
In case of such transactions was made with a Trust or Society controlled by the same management,whether such answer will be same?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

07 June 2010 The liability arise on making a provision/ raising debit note. ST to be paid in the subsequent month. The other enterprsie can avail the credit of ST if they are using such services fo rthe provding of taxable services or excisable goods are being manufactured.

DEBJIT MAJUMDER

DEBJIT MAJUMDER (Querist)
Follow

08 June 2010 Pl. do not answer on the basis of assumption......first answer was without having any specific notification/circular.....second one was far away from the main topic.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Joyashish Maitra

Saumil Kapadia

Raj Jaggi

Keshav Dubey

Poojitha Raam Vinay

Subscribe Now

intercorporate transaction

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANCY

GST CONSULTANT

Accountant

CA Final

Manager- Finance and Compliance