05 February 2015
Sir, Please let me know Whether any repair work services provided by a sister co. to other sister co. (both are subsidiary of a Govt. co.) are liable to pay service tax on such services. And consideration on these services are not in cash, however they sent debit note in respect of such services. Please solve this query and kindly mention related notifications about that.
05 February 2015
As per explanation to 67of the Finance Act, 1994 service tax in case of inter-company (associated enterprise) will be payable on accrual basis. Please refer Circular No. 334/1/2008-TRU dated 29.2.2008