Service tax on management fee from subsidiary

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Is management fee charged by a holding Company to its subsidiary subject to service tax. Both Companies are domestic companies. The management fee is for general management services

A holding Company charges a management fee from its subsidiary for providing general management services. Both Companies are domestic Indian Companies.Will this management fee be subject to service tax.

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A holding Company charges a management fee from its subsidiary for providing general management services. Both Companies are domestic Indian Companies.Will this management fee be subject to service tax.

Read more at: /forum/service-tax-on-management-fee-217699.asp
Replies (3)

Yes, under negative list regime. There is no express exclusion as to this in the charging section or in the mega exemption notification.

The fact that one is a holding and another subsidiary company has no relevance in service tax levy.

Regards

Its chargeable to Service Tax

Dear All Please confirm that can be take service tax input management fee charged by a holding Company to its subsidiary subject to service tax. Both Companies are domestic companies.


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