Taxes applicable for DVP Testing done outside India for Auto Parts tool

[Girish Mahabaleshwarkar]

Respected Sir,

This is with reference to we are in to manufacturer of Auto Parts, and as per requirement of auto Industries

1) we have to develop soft tool for customer which is not going to come back to India but exporter will charge a invoice for Development charges for soft tool.

2) Also Vendor will charge for DVP testing which he has done for few Zproto parts.

We like to know which are the taxes applicable for this transaction, so that it will take care of Service tax , TDS,etc and payment can be done smoothly to Exporter & compliance of Indian statutory laws.

Regards,

Girish M.

AI Summary

Indian Auto Parts Manufacturer Seeks Tax Guidance on Overseas Tool Development and DVP Testing Transactions A manufacturer of auto parts in India is seeking advice on the applicable taxes for transactions involving the development of a soft tool and DVP testing conducted outside India. The soft tool will not return to India, and the exporter will invoice for its development, while a vendor will charge for DVP testing on prototype parts. The manufacturer seeks clarity on taxes such as service tax and TDS to ensure compliance with Indian laws and smooth payment processes. A respondent requests further details on the nature of the transactions to provide a more accurate response.