Dear All,
This is urgent. Our Company has Given an service contract to a Company in India and that company sub-contract the same to a company in Indonesia worth $18,000. The Company in India is Charging Withholding Tax @ 20% and also Charging Service tax of the Gross Amount @ 12.36%. But I am not able to understand whether Service tax will be applicable on Such Service.
Can any of my friends guide me in this regard please?
The service tax is payable on all services provided as it is a destination based levy. The main contractor would have to pay ST on reverse charge to the Revenue for the services provided by person outside India. Further as the local person is billing you you would have to pay the approriate T to him.
if the service tax related to Mfg activity we can take the credit., and if the company PAN is available we can deduct 2% as per the IT act
S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
View Details
Fytomax Nutrition Private Limited
Aurangabad
CA Inter
View Details
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Final
View Details
Abic and Mani Chartered Accountants
Kottayam
B.Com
View Details
CCI
Pro
CAclubindia
