Document Fragment View

Matching Fragments

Your goodself will appreciate that, the expenses reimbursed by the Company were reasonable to the turnover of the Company and decreased over the period of time. -The statement of shared service expense ratio to turnover pf the Company is enclosed at page__ to _. Further, we wish your goodself kind attention to I.T.A. No. 957/Mum/2018 M/s Cole Parmer India Pvt. Ltd.
the fact that employee cost of the Company has increased over the years with the decrease in , shared service cost. We have enclosed herewith (at page __, to ) a summary of the shared service ...,„„.,, expenses based on the nature of the expenses reimbursed therein. It is respectfully submitted that largely (75% of total expenses) the shared service expenses incurred by the Company comprises of salary cost, depreciation and occupancy rent. As mentioned in our submission dated 10 November 2016, TFS India has already applied due withholding tax on the salary paid to employees and the rent paid for the common premises. Based on the judicial precedents mentioned in our submission dated10 November 2016, including that of the jurisdictional Bombay High Court and.Mumbai Tribunal which squarely apply to the facts of the case, it is submitted that reimbursement of salary and rent cost is not subject to withholding tax. Similarly, the other expenses reimbursed at cost have also been subject to due withholding tax compliance by TFS India. Considering this fact, a further withholding tax on the shared service cost borne by the Company is not applicable : under the withholding tax obligations of the IT Act, In case your goodself require any further details about underlying transactions, the same may. be obtained from the erstwhile group company in accordance with applicable provisions. Service tax on shared service expenses The service tax charged by Thermo India on shared service expense was debited to profit and loss account(included in the amount of shared service expenses) in the books of Cole India and represents revenue expenditure. The Company has not claimed MODVAT credit/input service tax credit of the shared service expenses incurred.
Your good self will appreciate that, the expenses reimbursed by the Company were reasonable to the turnover of the Company and decreased over the period of time. The statement of shared service expense ratio to turnover of the Company is enclosed at page 186 to 186. Further, we wish your goodself kind attention to the fact that employee cost of the Company has increased over the years with the decrease in shared service cost.
We have enclosed herewith (at page 187 to 187) a summary of the shared service expenses based on the nature of the expenses reimbursed therein. It is respectfully submitted that largely (75% of total expenses) the shared service expenses incurred by the Company comprises of salary cost, depreciation and occupancy rent. As mentioned in our submission dated 10 November 2016, TFS India has already applied due withholding tax on the salary paid to employees and the rent paid for the common premises. Based on the judicial precedents mentioned in our submission dated 10 November 2016, including that of the jurisdictional Bombay High Court and Mumbai Tribunal which squarely apply to the facts of the case, it is submitted that reimbursement of salary and rent cost is not subject to withholding tax. Similarly, the other expenses reimbursed at cost have also been subject to due withholding tax compliance by TFS India. Considering this fact, a further withholding tax on the shared service cost borne by the Company is not applicable under the withholding tax obligations of the IT Act.