15 March 2014
Abc is a company working in hotel industry and using the name of ITC Hotels and as per ITC norms they have appointed their two employees in that company and Abc is giving money for the service provided by employees of ITC ,treating it under head salary but deducting only service tax. ITC is issuing debit note for the same. So my question is what should be the name of service provided by them, what would be the tax treatment and under which category and head they should be accounted for ??? Hoping for a soon reply from ur side and i will b very thankful for ur response. . .
15 March 2014
well correct treatment should be that ITC issues invoice and service tax is charged on the same. the fees be accounted for under the head professional consultancy etc.
CAclubindia
