Service tax and TDS on payment to Singapore-resident party

[Rakesh Goel]

Hello:

I would like to clarify the following matter:

An  Indian private limited company wants to engage the services of a Singapore resident party for exploring partnership or joint venture opportunities in Singapore.  The Singapore resident party has no presence in India and the service will be rendered from Singapore. Please advise on the applicability of service tax and withholding tax for the Indian company in the following scenarios:

1. The Singapore resident is an individual and does not have a PAN number.
2. The Singapore resident is an individual and does have a PAN number.
3. The Singapore resident is a company and does not have a PAN number.
4. The Singapore resident is a company and does have a PAN number.

Thank you.

Rakesh

AI Summary

Indian Company to Pay Service Tax Under Reverse Charge for Hiring Singapore Resident for Business Exploration An Indian company seeks to hire a Singapore-resident party for exploring business opportunities in Singapore. The discussion focuses on the applicability of service tax and withholding tax for payments made to the Singapore party, considering different scenarios based on the party's status as an individual or company and possession of a PAN number. It is clarified that the service is subject to service tax under the reverse charge mechanism, requiring the Indian company to pay the tax. A follow-up question inquires about withholding tax liability, but no response is provided in the text.