Services to infrstructure sector

This query is : Resolved

CA VINOD JAIN (Querist)
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13 December 2007 We are having a pvt. ltd. company , by which we want to provide verious types of services to our related company projects whihc are in differnt companies , services like architech servies , technical services , marketing services in nut shell we want to pay various services paymnet through in one copmay but the services will be utilised by other companies . there is no profit moto. what will be scenerio for services tax point of view and ay right way for use this scenerio ?

CA. Vineet Grover

CA. Vineet Grover (Expert)
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15 December 2007 Hi Vinod,

In the instant case, you need to levy service tax on the said services. Like-wise TDS shall also be deducted.

I recommend that departments may be made within the company for providing such services instead of outsourcing the same from a sister concern.

As the companies are related, the composiiton may be easily modified at the best advantage of the organization for the purpose of best tax planning.

Rgds/
vineet