Dear Expert,
We are going to pay fees for feasibility study ( some of our tooling) in foreign currency (Euro) to our consultant at Germany. kindly advice whether the R and D Cess will applicable at the time of payment? if applicable then should we take the input tax with service tax? we are regularly depositing R and D Cess on payment of Royalty ( to our technology provider at Korea).
Kind Regards,
bcb
R&D Cess applies to feasibility study fees if deemed 'technology' under R&D Cess Act, 1986; no input tax credit. A user inquired about the applicability of the R&D Cess on fees paid for a feasibility study conducted by a German consultant, questioning whether they could claim input tax with service tax. They regularly pay R&D Cess on royalty payments to a Korean technology provider. The response clarified that R&D Cess is applicable if the study qualifies as 'technology' under the Research and Development Cess Act, 1986, but credit cannot be availed on this cess. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
