Applicability of tds and service tax

TDS 703 views 4 replies

SUNDARARAJ

sr.executive-commercial

29 Points Joined July 2013

We have an order for Annual Software Maintenance and Support Agreement from and Indian Customer...we are also based in India, Against which we will be importing this service from our denmark Prinicpal. As there is no physical movement of goods, There is no applicabliity of Custom Duty. My query is

I now want to make the remitance to the denmark Principal. .. are we suppose to deduct TDS on this transaction.. if yes then what is the rate of TDS to be deducted... The denmark prinicpal has a PAN number in India...

Secondly what will be applicablity of service tax for the transaction between my Denmark prinicpal and My Company. is there any service tax involved in the transaction between my Denmark prinicpal and My Company.

Thanks in advance

Replies (4)

Haridas Mundhada

msclasses.in

56 Points Joined August 2009

As per my opinion

The above transaction come under the preview of Fee for technical services(FTS)

as per sec 195 of the act it should be deducted at applicable rate which is spelt out us 115 A. FTS is taxable at flat rate of 25%. The situation would remain same whether or not the deductee have pan or not