Hi All ,
I have a question regarding the Tax Implications on the following situation :-
Machinery Supplied from outside India at FOB price. The cost of Machinery Includes the Erection & Installation charges also.
- How to segregate the Installation & Machinery Cost?
- The taxability of Installation Cost in India.
- The applicability of Service tax on it.
Supposedly there's a branch in India of the foreign company & the machinery is supplied directly to the customer & bill for the same is raised to the customer from outside India & remittance is also made to Head Office not to the Indian branch.
- What will be Tax implications of the above transaction on it's Branch In India ?
Your kind views & opinion's are awaited.
Regards,
Pravesh Rathi
CAclubindia
