Service tax and tds on royalty payment to foreign vendor
This query is : Resolved
21 September 2012
Hi,
Please can anybody help me to solve my query regarding Service Tax and TDS calculation on royalty Payment to Foreign Vendor.
We are paying Royalty to foreign Vendor and we have to calculate TDS & Service Tax on this Royalty. Foreign Company is not going to bear either Service Tax or TDs. So if i am paying 1000 rs. Royalty to Foreign Company what will be the service Tax & TDs liability for us and what will be the accounting entry.
thanks in advance for your help.
Regards,
Ratna
Please can anybody help me to solve my query regarding Service Tax and TDS calculation on royalty Payment to Foreign Vendor.
We are paying Royalty to foreign Vendor and we have to calculate TDS & Service Tax on this Royalty. Foreign Company is not going to bear either Service Tax or TDs. So if i am paying 1000 rs. Royalty to Foreign Company what will be the service Tax & TDs liability for us and what will be the accounting entry.
thanks in advance for your help.
Regards,
Ratna
21 September 2012
TDS AMOUNT (1000/90)* TDA RATR
SERVICE TAX IS RS. 1000*12.36%
SERVICE TAX IS RS. 1000*12.36%
21 September 2012
Hi, Thanks for your reply.
Dont we have to pay Service tax on TDS grossed up Value. Please explain me.
Dont we have to pay Service tax on TDS grossed up Value. Please explain me.
21 September 2012
beacuse in the form 15CB ca certify onle foreign remitance amount which not including service tax.
22 September 2012
Hi RATNA,
YES SERVICE TAX ALSO CALCULATED 1000/90*100)*12.36%
YES SERVICE TAX ALSO CALCULATED 1000/90*100)*12.36%
Message likes :
1 times
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Gift of mutual fund units to daughter
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
