Service tax Liable to Subsidiry compnay

[MITSUI PRIME ADVANCED]

Dear Sir,

We would like to inform u our pariental compnay of MCI, Japan ( Mitsui Chemicals Inc. , Japan ) issue some Invocie  being related to salary, and  other  to Mitsui Prime Advancded Composit India Pvt Ltd, India,( its a subsidiray compnay of MCI, japan,a unit of MCI, japan and total capital invested by MCI )  and Mitsui Prime advancded paid 10% of bill in india and 90% trnafer to MCI Japan , and MCI  japan , salary transfer to empolyee's Bank Account without any charges who are working in India, so please advoice  me we will liable to pay service tax or not 

Regards

 Arjun Sachdeva

Cell No. 9928158547 

[NEERAJ KUMAR, RANCHI]

Hello,

It all depends on what services you are receiving from your indiian subsidiary, if your payments are against some services received from your subsidiary, then it may attract servicice tax depending on the nature of services provided, so unless the full details are provided, it  is really hard to comment.

[MITSUI PRIME ADVANCED]

Dear Sir,

 

All Japanies employees of MCI, Japan working in MItsui Prime Advance , India. as a head of the department just like that GM Plant , GM Finance, GM Sales & Marketing, GM Engineering, and MCI Genrated Salary Bill to AcI, India so we will liable to pay service tax on bill or not , 10% of Bill Amount paid by ACI, India to Japanes Head for Expenses basis and 90% Amount transfer to MCI, Japan and MCI Japan tranfer to his bank a/c without any charge so,

Pl. advoce me that service tax liablity applicable or not

AI Summary

Service tax liability on cross-border salary-related payments depends on whether they constitute consideration for taxable services. Whether payments by an Indian subsidiary to its foreign parent and then to foreign employees attract service tax depends on whether those remittances constitute consideration for services supplied; the available advice states taxability cannot be determined without fuller transactional and contractual details.