Transaction between holding and subsidiary comapny
This query is : Resolved
08 October 2009
Dear sir,
1.A Indian Company(Holding Company) having foreign subsidiaries charges intercorporate charges on the foreign subsidiaries. will this attract service tax?
2.The Holding Company incurs cost on behalf of subsidiaries both direct and indirect cost. The direct cost is charged to subsidiaries with a margin. Indirect costs are charged at the standard rates arrived by standard costing.
In the above situtaion will there be any service tax? if yes, under which head and why?
It will be of great help if somebody could get back to me on this at the earliest.
Regards,
Jumbo
1.A Indian Company(Holding Company) having foreign subsidiaries charges intercorporate charges on the foreign subsidiaries. will this attract service tax?
2.The Holding Company incurs cost on behalf of subsidiaries both direct and indirect cost. The direct cost is charged to subsidiaries with a margin. Indirect costs are charged at the standard rates arrived by standard costing.
In the above situtaion will there be any service tax? if yes, under which head and why?
It will be of great help if somebody could get back to me on this at the earliest.
Regards,
Jumbo
10 October 2009
There is no service tax on reimbursement. No ST is required to be paid on intercorporate charges.
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