Dear all,
We have taken a metal (Boulders) quarry for excavating boulder stones from a quarry owner. He is having all the permissions from the mining as well as government for quarrying. After closing of month we are paying the lease rent per ton basis on the lifted material. We are only paying the royalty amount which is payable to government on behalf of owner on the lifted material.
My question is whether --
1) We have to deduct the TDS on the lease amount paying to the owner and how much.
2) or We have to pay service tax ? It comes under mining then is there any exemption for service tax?
3) can we claim this royalty amount paid as expenditure in our accounts as royalty amount?
Please clarify my question as i am facing too much problem.
Thanks and regards
Krishna
CAclubindia
