On import of technology, if Witholding tax is to be borne by the Indian importer, then for payment of R&D cess is the grossed up value (taken for calculation of Witholding Tax) to be considered or the net invoice value is to be considered?
Similarly for calculation of Service tax as deemed service provider, on such import, is the grossed up value to be taken.
Grossed-Up Value, Not Net Invoice, Used for R&D Cess and Service Tax on Imported Tech Withholding Tax An individual inquired about whether the grossed-up value or the net invoice value should be considered for calculating R&D cess and service tax on imported technology when the withholding tax is borne by the Indian importer. A chartered accountant responded, explaining that withholding tax is akin to TDS and should include the amount credited to the non-resident plus the tax deposited. Therefore, the gross amount should be used for calculating service tax. The original inquirer sought further clarification specifically on the calculation of R&D cess in such scenarios. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
