Service tax / income tax (tds) query:
YOGESH KUMAR
(Querist) 17 April 2013
This query is : Resolved
SERVICE TAX / INCOME TAX (TDS) QUERY:
1. A company in India is providing online technical support to customers in a foreign country. The company has a tie up with another company in a foreign country. All the calls for technical support are being attended by an Indian company and online support is also provided by Indian Company through their staff in India. The payment is being received by foreign company. Both the companies have enetered into agreement, whereby, the foreign company outsources the entire activity of online technical support to an Indian Company. The foreign company deducts a particular percentage of the entire collections as per the agreement, and remits the balance amount to the Indian company. Under these circumstances, there are following queries:
a) Is the Indian Company liable to pay any TDS for the amount being retained by a foreign company out of the total collections for technical support being provided by an Indian company? If yes, then at what rate? If no, then why no? Pls elaborate.
b) what will be the liability of an Indian Company, towards Service Tax? Whether service tax @ 12.36% should be calculated and deposited on the full value of the services, or after deducting the amount payable to the foreign company before TDS or after TDS? as the services are being provided from India.
Pls enlighten the undersigned with your suggestions / solutions to the above queries.
Thanks in advance.
Y KUMAR
Computers.bright@gmail.com
Anirudh
(Expert) 17 April 2013
Yours is a fullfledged commercial query and your company can definitely afford the lawyers / tax expert's fees.
Anirudh
(Expert) 17 April 2013
The chances of your query getting resolved here is quite bleak, not because the experts don't know the answer, but because yours is a Company and company can definitely afford the fees of the professional and avail their services.
YOGESH KUMAR
(Querist) 17 April 2013
I think this site is for knowledge sharing between professionals and end users and not for client hunting. If you are looking for clients through this site, then you are at a wrong place. If you can resolve the query it is good, but if you are not interested, then please don't post such comments.
THE QUERY IS STILL OPEN AND NOT YET RESOLVED.
Anirudh
(Expert) 18 April 2013
What you are seeking is not knowledge on the contrary solution to your problem. It has been repeatedly stated by experts here that the legal solutions are provided here for the needy and not to corporates who can afford the professional fees. No one is seeking or hunting for a client here. Surely, I am not so naive to think by giving that sort of curt replies, any client would come to me! This itself will go to show that one is not hunting for any client.
Having come to the public forum, you are nobody to tell me whether or not I should post my comments. It is not the question of whether I am interested or not, it is the policy so far followed by the experts in the LCI which I informed you.
YOGESH KUMAR
(Querist) 22 April 2013
For your kind information, I am an individual and not a body corporate. Moreover, the name of the site is "Lawyers Club India (Interactive platform for lawyers and Indian Public)". One of my friend raised this query to me, which I could not answer fully. I thought it better to interact with professionals and if possible, increase my knowledge. I am of the opinion that knowledge increases with sharing, but if you and other professionals looking into this query and probably not answering due to your expert negative comments think otherwise, then it is up to you. I could have contacted you, but I find that you are still not a PRO member.
THE QUERY IS STILL OPEN AND UNRESOLVED, AND WOULD LIKE TO THANK IN ADVANCE TO A PROFESSIONAL MEMBER WHO MAY REPLY TO THIS QUERY AND WRITE SOME LINES OF WISDOM AND HELP IN INCREASING MY KNOWLEDGE. NO NEGATIVE COMMENTS PLEASE.
Anirudh
(Expert) 23 April 2013
I am happy that you noticed that I am still not a PRO Member.
This itself will be fitting answer to your own unjustified assumption and comment that I am looking for clients through this site, when you said : "If you are looking for clients through this site, then you are at a wrong place.".
YOGESH KUMAR
(Querist) 24 April 2013
The query is still open and not yet resolved.
YOGESH KUMAR
(Querist) 08 May 2013
WAITING FOR SOLUTION TO THE QUERY.
