KINDLY CLARIFY THE FOLLOWING:
WE SENT A SEMI PROCESSED GOODS TO JAPAN FOR ELECTROPLATING AND RETURN INTO INDIA FOR FURTHER MANFACTURING. THE PROCESSING COMPANY IN JAPAN USED THEIR RAW MATERIALS FOR ELECTROPLATING AND RETURNED TO INDIA. THE RE-IMPORTED GOODS WERE CLEARED ON PAYMENT OF CUSTOMS DUTY FOR THE VALUE ADDITON ON THE GOODS. NOW WE HAVE TO MAKE THE ELECTROPLATING CHARGES TO THE PROCESSING COMPANY IN JAPAN. NOW MY QUERY IS WHETHER TDS IS APPLICABLE FOR THIS PAYMENT?
PLEASE NOTE THE FOLLOWING FOR REPLYING:
A) IT IS A MANUFACTURING SERVICE i.e. PROCESSING OF GOODS
B) THE PROCESSING COMPANY DOES NOT HAVE ANY PERMANENT ESTABLISHMENT IN INDIA
C) THE PROCESSING WAS DONE IN JAPAN
D) THE CHARGES WE PAY IS A LUMSUM WHICH INCLUDES MATERIALS AND THEIR LABOUR.
IF TDS IS APPLICABLE, WHAT IS THE RATE OF TAX TO BE DEDUCTED AND PROVIDE US THE DOCUMENTATION PROCEDURE.
IF TDS IS NOT APPLICABLE, PLEASE PROVIDE US THE DOCUMENTATION PROCEDURE
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