R & D Cess on Feasibility Study, Other Topics

[Bhairob Chandra Bor]

Dear Expert,

We are going to pay fees for feasibility study ( some of our tooling) in foreign currency (Euro) to our consultant at Germany. kindly advice whether the R and D Cess will applicable at the time of payment? if applicable then should we take the input tax with service tax? we are regularly depositing R and D Cess on payment of Royalty ( to our technology provider at Korea).

Kind Regards,

bcb

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

The RandD Cess is payable to the consultant on the feasibility study if it amount to 'technology' as defined under Section 2(h) of the Research and Development Cess Act, 1986. Credit cannot be availed on RandD Cess.

Regards.

M. Govindarajan