claim of TCS

This query is : Resolved

Subhash Chander (Querist)
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26 May 2009 Our client give services to a Japan based company and issue a bill of USD 5500/- including service Tax for their consultancy charges. The company based in japan give us payment of USD 5500/- fully. However they also deposit 10% of Rs. 5500/- i.e. USD 550/- as TCS in Japan on our behalf.

Now the query is that we give bill of Rs. USD 5500/- and get fully paid. But USD 550/- deducted on our behalf as TCS will include in our income and can we claim TCS. or we should not do the same. If we will do the same than whether we should revise our return of service tax by increasing income of Rs. 550/- USD also.

Please clarify. Urgent matter. Because the profitability relates to it. Subhahs Chander 999 000 3502, 905 089 5040

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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27 May 2009 Your client should examine whether he is liable to charge the servic etax at all to the Japan company. It appears that he is not liable to pay under the export of services rules 2005.
Anyway if he charges and collectes he has to pay the amount of servic etax charged and collected.