with hold tax

This query is : Open

C A Mukesh Kumar (Querist)
Follow

16 June 2009 Sir
Our Co. (A PSU) entered a consultancy contract with a company of Austria for receiving technical service (both onshore and offshore) regarding excavation of tunnel. as per contract the income tax liability in India and Austria will be borne by foreign consultant and service tax and all other indirect taxes shell be borne by us.
With reference to above contract what procedure to be followed by us with respect to blow mentioned points.
1. What are the withholding tax provisions as per Indian revenue authorities?
2. How calculate service tax liabilities?
3. In which format we issue tax withholding certificate to consultant?
4. How much TDS to be deduct from consultant?
5. As a finance personnel what point to be checked before points?
Please guide me I will be wholly responsible regarding above mentioned payments.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

17 June 2009 As far as ST is concerned, the same wouldbe liable where the services are recived in India. If recived outside India there is no liabilioty in my view.
ST if any paid on the same is also eligibel for reufnd since the final service provided by the PSU appears tobe a export of services.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now