Import of Design for plant

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shehzad

accounts executive

82 Points Posted on 14 April 2009

My company is planning to import some designs relating to a plant to be installed in the Industrial Park. Now the various aspects to be covered are Income Tax, Service Tax & FEMA Provisions.

Regarding Income-Tax aspect, I think that if PE is absent, than TDS has to be deducted @ 10% plus S.C., E.C. & SHEC. [Section 115A(1)(b)]

Please correct me if I am wrong.

Regarding FEMA, I think that for consultancy service procured from outside India for executing Infrastructure Projects, US $10 Million per Project can be remitted without RBI prior permission.

I dont have any further information regarding FEMA provisions, so Please tell me what is to be seen further.

Regarding Service Tax, in my opinion it will not fall in:

1) Commercial or industrial construction service as the definition excludes the construction activities in relation to infrastructure projects, which the Government is trying to build.

2) Consulting Engineer's Service as Service Tax is not payable on the royalty amount. (Navinon Ltd. v/s CCE [2007])

In case of any other points, please reply ASAP.

Thanks

Replies (2)

Sachin

Chartered Accountant

413 Points Posted on 14 April 2009

Dear Shehzad,

It is a Technical Issue and any body cannot say confirmly without full information. please send me full detail sothat i can help you. my email id is sachinagarwalcallb @ gmail.com

shehzad

accounts executive

82 Points Posted on 15 April 2009

Thanks Sachin,

but the problem is I am also having this much of details only. So u plz tell me what i have written in my query is correct or not.

Regarding ST, I found that it will fall in Intellectual Property Services. But there is an old notification that if ownership is transferred than it will not be chargeable to ST.

Plz help me with this limited details.

Thanks.