Tax implications from various tax angles

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This query is : Resolved

yogesh vijaykumar shah (Querist)

12 November 2010 The company is going to import Pericoli Fans from Italy. For import these fans the custom duty will be charged. To minimise the custom duty can we break the invoice amount into material and consultancy charges. IF yes, whether TDS provisions u/s 195 will attract for consultancy charges?

Also let me know the information regarding:
1. Documents required for import the said fans
2. at what rate custome duty will be charged for import of Pericoli fans.

C.A.laxmikant Saini

C.A.laxmikant Saini (Expert)

13 November 2010 if you break the invoice in material and consultancy than you company would liable to service tax under recipient of such services in India, where taxable services are provided by foreign service providers with no establishment in India; under consultant engineer service. and if seller is related party than in SVB Assessment the company face hardship to justify the material value for better tax planning please specity the nature and you can contace me as well.

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