Hi,
This query is regarding double taxation on the the same work and need your assistance. The problem is as described below.
Lets say company A got a work order for 1 lakh for some software development and it directly outsourced the entire work to company B for Rs. 80K, now while raising invoices, company A raises an invoice for 1 lakh with service tax on it to the client and company B raises an invoice for 80K with service tax to company A.
Now in this senario, would like to know whether company A can reduce the service tax liability on 1 lakh to only Rs. 20 K where it already paid for 80K to company B.
(Will this come under input service credit kind of thing)
Thanks in advance.