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Transfer of holding co. overhead expenses to its subsidiarie

Queries 502 views 1 replies

Holding company passes on its overhead expenditure to its subsidiaries on some some rational basis & gives debit memos to its subsidiaries for accounting purpose. My query is:

1) Whether this is a "service" provided by the holding company to its subsidiary companies?

2) Does this attract service tax provisions?

3) Is the subsidiary company required to deduct TDS against the PAN no of its holding co. on the basis of debit memo received ? If so then under which section A reply in this regard will be of great help

Replies (1)

If you are trnsferring the money without getting service then you donot fall inthe definition of service and so not required to pay Service Tax.


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