Hi friends, plz help me solve this very urgent issue on Service Tax
There is a company XYZ Inc registered in USA. XYZ Inc has to provide Certification service to HCL India on certain technical issues. To do all the working they appoint ABC ltd an Indian Company to do audit/investigation on their behalf and submit the report to XYZ Inc. ABC Ltd cannot sign the certificate themselves, certificates will be signed by USA Co only. Now the terms of payment are as under
XYZ Inc will not charge anything directly from HCL India. ABC Ltd will raise the invoice on HCL and charge the requisite fee which will be taxable under Business Auxillary Services and rate of Service Tax is 10%..
Now ABC Ltd will pay 25$ per certificate to XYZ Inc. on basis of invoice raised by XYZ Inc. NOW MY QUERY IS that under whuch head of taxable service will this payment by ABC Ltd to XYZ Inc fall and is there any requirement to deduct T.D.S on such payment ?
CAclubindia
