We are paying service tax on royalty paid to foreign compnay as service receiver. My query is whether service tax is payable on actual remittance made to foreign compnay i.e. after deducting the TDS or gross value.
Thanks in advance
Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
09 August 2013We are paying service tax on royalty paid to foreign compnay as service receiver. My query is whether service tax is payable on actual remittance made to foreign compnay i.e. after deducting the TDS or gross value.
Thanks in advance
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 12 August 2013
Service Tax Rule regarding determination of value says it has to be gross amount.