16 April 2012
Dear Sir Company A in india has entered into an agreement for testing of minerals and submitting a report with a company in china. The testing is done in China and the Indian company pays the testing charges to the chinese company on receipt of the report.
Is the payment made to China taxable.
Is there any exemption from taxation for this payment made by the indian company to the chinese company
16 April 2012
Dear Friend, Since the company in India has hired the Company A for testing of minerals the payment of testing and report charges by Indian Company is taxable U/s. 9 of the Income Tax Act, 1961. Thanks
CAclubindia
