Customs duty,withholding tax

From your query what  I understood is that Importer has paid Customs duty on Commissioning charges as consolidated invoice for the material and commissioning and commissioning charges is subject to with holding tax and now you want the course of action correct? if yes then answer is as follow:

With holding tax is to be paid on the amount of Commission after Grossing up of the tax if net  commission is to be paid .At the same time India's DTAA should be verified with USA. Further GST is also payable on the services of Commissioning.After complying all the above things you may remit Commissioning  charges to the foreign technician.If your foreign technician accept  burden of withholding tax  then you deduct tax after verifying DTAA and remit the remaining amount after paying .But GST in both case your client will have to pay.   

Many thanks,Sir

Here importer is Indian parent

Exporter is Wholly owned subsidiary. Therefore, besides transfer pricing / arm length pricing, accounts and tax consolidation issues are involved. Kindly guide

Rgds

Jayanta

Howrah