Hello sir,
My querry is regarding place of provision of service in following transactiion?
"Mr. X has purchase a machine from A ltd. based in US with one year free maintenance clause.
When the machine need to be repaired within one year, Mr. X sends it to US to A ltd. for repair considering free maintenance clause. A ltd in turn sends it to Y ltd. located in India for repairing to be performed by Y ltd. The payment for this repairing work will be made by A ltd. the supplier of machine.
My question is what will be the point of taxation in this case??
If A ltd. recovers the charges from Mr. X then would the answer differ??
CAclubindia
