Service tax for associated company payment
A ltd is a subsidiary company of B ltd, A ltd have three clients X, Y, Z they also clients of B ltd. B ltd provide some service regularly to X, Y, Z, A ltd collect the service charges with service tax from above clients for service render by B ltd (B ltd raise the bill to A ltd for above mentioned service) and A ltd paid the amount to B ltd month wise.
My doubt is.
1. Is A ltd want to pay the service tax amount to Govt and take the cenvet for paid to B ltd? (or)
2. A ltd pay the collected amount to B ltd
Which is correct
Kindly help me.
CAclubindia
