Foreign Company(X) - Given on hire to an Indian firm
Agency Agreement exist between Indian Concern and foreign company .As per the agreement Indian company will hold 10% and balance of 90% of income made by Indian concern remit to foreign company. And also cost sharing of 25:75 between foreign company and Indian company.
Indian Firm(Y) - As per the Agency agreement Indian concern will give these drilling equipments on hiring/Lease basis in India. This firm is giving these equipments to a Gujarat based petroleum company (Z) on lease basis.
Agreements also exist between Indian concern and Gujarat Company. As per the agreement invoicing to be made in Dollars.
Query
· Agency agreement exists between x and y, what will be the withholding tax rate for the remittance to be made to the X by y.
· Z raising invoice in dollars to y, for the leasing of equipments, whether service tax or VAT will be applied.
· Whether it is required for the Z to make TDS on the Invoice. if yes then at what rate
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