My company is planning to import some designs relating to a plant to be installed in the Industrial Park. Now the various aspects to be covered are Income Tax, Service Tax & FEMA Provisions.
Regarding Income-Tax aspect, I think that if PE is absent, than TDS has to be deducted @ 10% plus S.C., E.C. & SHEC. [Section 115A(1)(b)]
Please correct me if I am wrong.
Regarding FEMA, I think that for consultancy service procured from outside India for executing Infrastructure Projects, US $10 Million per Project can be remitted without RBI prior permission.
I dont have any further information regarding FEMA provisions, so Please tell me what is to be seen further.
Regarding Service Tax, in my opinion it will not fall in:
1) Commercial or industrial construction service as the definition excludes the construction activities in relation to infrastructure projects, which the Government is trying to build.
2) Consulting Engineer's Service as Service Tax is not payable on the royalty amount. (Navinon Ltd. v/s CCE [2007])
In case of any other points, please reply ASAP.
Thanks
CAclubindia
