development charges

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2009 Hi,

help me out on this issue.

if we have to make payment for a abroad company for developing a die and place it to the our manufacture who is also located in abroad i.e die is not imported to India developed and utilized in abroad on behalf of us.

know we need to make a payment for the developer for Making a die say for around USD 22,000/- ( INR 10 lakhs)

My question is whether any Tax is applicable to us.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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16 December 2009 Under service tax services provided from outside India and delivered outside India may not be a subject matter of tax in India. Invoice may clarify this aspect.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

16 December 2009 Under service tax services provided from outside India and delivered outside India may not be a subject matter of tax in India. Invoice may clarify this aspect.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2009 But invoice for development charges as been raised on us and payment will be effected from India. So the douth arraised to me.