Tax implication in foreign transaction

This query is : Open

Kailas Avhad (Querist)
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21 August 2014 Respected Expert,

We are a software services provider company. Want to make a payment to our vendor who is giving similar services like software maintenance, Re-engineering, web designing. He is currently located in UAE and he is a Indian Non Resident. He provided bank details of UAE Bank our query is, how we can proceed for further payment. What will be the tax implication on us & on vendor ???

Rupesh Jain

Rupesh Jain (Expert)
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22 August 2014 you have to deduct the tds u/s 195 @ 10% if have PAN of india otherwise @ 20%.
then you make payment to vendor.

Kailas Avhad

Kailas Avhad (Querist)
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22 August 2014 thanks for your reply....

but the person is settled in UAE & running business from UAE. All the activities doing from UAE only so we had to deduct TDS U/s 195 ? or made full payment in dirham (UAE Currency)