Dear experts
We are manufacturer of organic chemicals. We have also research and development center in our factory where we are developing new products.
We have our US base parent company for them only we develop new product. Parent company will be sole owner of discoveries made in R & D center. All expenses incurred by us on R & D center which includes salary of employees reimbursed by parent company through quarterly invoice raised by us.
Please let me know what will be the “Category of service”?
Organic Chemical Manufacturer Seeks Tax Advice on R&D Service Classification; Exported Services Not Subject to Tax. &D A manufacturer of organic chemicals with a research and development center is seeking advice on the appropriate service category for tax purposes. Their R&D services are provided to a US-based parent company, and expenses are reimbursed. An expert clarifies that since the service is exported, it is not subject to service tax. The manufacturer is applying for a scrip issue and needs to specify the service category on their registration certificate. Suggestions include classifying it under 'Other Than Negative List' rather than 'Consulting Engineering Services.' The discussion concludes with gratitude for the advice received. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
