Tax planning

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2011 Dear All,
I have a practical problem & need your help:-
There are 3 companies in a A, B, & C.
Company "A" has Vehicle, which are used by Co. "B" for hiring them to co. "C".
Company B receive transportation charges( which is his only source of income) from co. C, out of which it pay a fixed amount (for paying EMI to bank by co. A) to co. A.

If CO. A show amount as Rent than it has to charge TDS (@ 2% & S. Tax 10.3%
Deducting TDS is no problem as "B" can adj. agst Tax Liability.
Question is how we can save the Ser. Tax amount.
Pls suggest me a way come out of the problem.

Many Many Thanks
Rahul

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2011 Dear All,
Whether Co. A show the amount which he receive from company B as transportation charges. In that case co. A is not required to charge service tax.
Pls suggest your view in the matter

Thanks
Rahul

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2011 Any comment please ?

Thanks: