ABC Pvt. Ltd. a company registered in India want to pay ₹ 600000/- to a company in Mauritus for professional services rendered by it towards formation of a new company, appointment of directors, company secretary.
Query is:
Whether ABC is required to deposit service tax on recipient basis. If yes, at what rate.
Indian Company Must Pay 12.36% Service Tax on Professional Fees to Mauritius Firm, No Exemptions or Abatements Available. ABC Pvt. Ltd., an Indian company, plans to pay 600,000 to a company in Mauritius for professional services related to forming a new company and appointing directors and a company secretary. The query is whether ABC must deposit service tax on a recipient basis and at what rate. The responses confirm that ABC is required to pay service tax at a rate of 12.36% on the gross amount, with no abatement or exemption available. The tax must be paid through e-payment, and CENVAT credit can be availed following the prescribed rules. (AI Summary)
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