Accounting and service tax

This query is : Resolved

M. Hemalatha (Querist)
Follow

15 December 2012 Please clarify my doubts.........

Holding company in china having subsidiary in chennai have following transaction

1. Holding company had agreement with his client in Chennai.

2. Holding company transfer goods to Chennai Subsidiary company(Import).

3. Then subsidiary company transfer the goods to Client in chennai.

4. How to account this transaction in Chennai(S) company.

5. Is Service Tax provision applicable or not??

Kaushik Vinod

Kaushik Vinod (Expert)
Follow

16 December 2012 Hi Hemalatha,

If the Holding company is paying commission to Subsy company for sale of goods then the commission on sale of goods is not taxable as per Rule 03 of Place of provision of service rules, 2012 and called the export of service.

Thanks

M. Hemalatha

M. Hemalatha (Querist)
Follow

28 December 2012 Thanks you

Upgrade to CAclubindia Pro. Subscribe Now!