Tds on trademark application service by trademark attorney

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This query is : Resolved

CA Parin Thakkar (Querist)

18 November 2013 one of the reputed trademark attorney provoide us service for registering our trade mark. Howerver Bill details submitted by them shows Rs.14000/-(paid for Governemnet fee Separetely mentioned in bill) & other column shows their service charge Rs.25002/- plus s.Tax on service charge Rs.3090/- . Total consolidated Bill Rs.42092/-

so please clear my doubt:
1. shall we liable to deduct TDS u/s 194J & what should be the amount on which TDS deducted
2.shall we get S.tax credit.
3.what will be the proper accounting treatment for Trademark expenses/what amount should be capitalised.

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)

19 November 2013 1. Rs. 14,000 would not be considered fir the threshold limit if the same is mentioned on the invoice separately and also if the copies of the challans paid are available.

Hence, there would not arise any TDS liability as amount of Rs. 28,092 is less than Rs. 30,000. (Assuming Attorney is a Redident in India)

2. Please refer to CENVAT Credit Rules for the same.

3. Entire amount of Rs. 42,092 must be capitalised and the same should be amortised over a period not exceeding ten years as per AS-26.

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