TDS

This query is : Resolved

RANGA SRINIVAS (Querist)
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24 June 2010 A Ltd is a 100% subsidiary of B Ltd. Both are indian companies. The management of B ltd is devoting part of their time in managing the affairs of A ltd. For Managing the affairs, Can A Ltd charge on management fee (no profit margin) to B Ltd.

Questions are:

1. Can A Ltd raise a bill for reimbursement of manpower expenses? Since it is reimbursement, there will be NEITHER TDS NOR SERVICE TAX IMPACT.

2. Is it right

Kindly answer

Can

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 June 2010 Yes. It Can be rasied both Service tax and TDS will attract on that Bill

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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24 June 2010 QUESTION IS NOT CLEARED.
IF B LTD IS HOLDING COMPANY.
AND DEVOTING TIME IN A LTD.
THEN B LTD WILL CHARGED FOR ITS DEVOTED TIME, NOT A LTD.
A LTD IS GETING SERVICES OF B LTD.

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