12 August 2008
a product has been imported by one party (A)& the same is given to other party(B) for value addition for specific cost, service tax is paid on this cost component , as the same party distributes product in the market also. at the end of the year profit is shared between the two equally,
does this share of profit is subjected to service tax in the hands of B, if so who is held responsible for the payment A/B Matter is very urgent please reply with proper reference.
CAclubindia
