17 October 2012
Group Company paid EMD's on behalf of other company and raised a debit note for the EMD amount is this transaction subject to service tax
26 October 2012
It is a very tricky issue. Although we may consider that as there is no profit margin - no consideration, it must not fall as taxable service. however earlier there have been instances wherein in case of manpower deployed in group co. , reimbursement of actual cost was made taxable.
accordingly it is suggested that such transactions should be avoided.
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