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Service tax query

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Swati Baidya

Legal & Compliance Officer

40 Points Posted on 12 September 2011

My Company manufactures liquors on Contract Brewing basis (Brand licensing ). The Company pays Service Tax on IPR for its income. And the Contract Brewers pays Service Tax on BAS .

My query - is it possible that If the Company reimburses some portion of Service Tax of Contract Brewers , Can the Company claim set off this Service Tax payment to Contract Brewers against its own Service Tax payment under IPR.

If Yes then under which Provision? An earliest reply will be appreciable.

Thanks & Regards

Swati Baidya

Practicing Comany Secretary

Replies (1)

ANOOP KHANDELWAL

charered accountants firm

24 Points Posted on 12 September 2011

Foreign Directors and other man power comes to india related to creation of wholly on subsidiary ( Like Location, Vendor, Customer, etc.) After Some month they create the company. Company Payment to their daily charges, Trvelling exp, hotel exp, Lodging Boarding etc.

Department Say that Its a service tax Liability on Company and pay service tax on Daily charges and out of Pocket exp. ( Include All Charges) and Classify in Managment Service.

My Query is that Can service tax applicable on Company. If Applicable then in which Service We Calssify it. Can Service tax liability also on Out of Pocket Exp.

Pl Reply to me.

Regards

ANOOP KHANDELWAL

CA, CS,

caanoopkhandelwal87 @ gmail.com

9251080845