Service tax calculation for payment from foriegn organizatio

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2015 Hi, an Indian firm conducts recruitment in India on behalf of a foreign(US) company. Kindly, advice on the following:
1. Whether Service Tax and SBC(14.5%) are applicable to the payment made by foreign company?
2. Now, this Indian Firm has to pay the royalty(from the payment received by foreig company) to its Indian vendors for the same service. Since the ST&SBC already paid(by the foreign company), whether vendor payments are taxable?
3.What are other deductions like TDS in vendor payments?
Kindly clarify..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 November 2015 1 Yes service tax and SBC(14.5%) applicable on this payment.
2 Vendor payment is taxable but cenvat credit can be availed.
3 TDS applicable on vendor payments.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2015 Thank you so much Mr. Seetharaman. What if an Indian firm running English Language Tests in India which is sponsored by US NGO to get admissions in foreign universities. Whether Service Tax and SBC is applicable? If so how to claim?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 November 2015 Here the service provider and service receiver both are in India so service tax and SBC is applicable. Collect service tax along with fees.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 Thank you so much...

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