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Tds on payment to nri consultant

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 August 2017 1. We have hired a NRI (US Resident) as project Consultant for our construction project. he will be staying in India during Construction period of approx 4-7 years. we will be paying him in foreign exchange only say 15000 usd per Month. what would be the TDS rate to be applied and under which section. whether form 15CA & CB is required.

2. We have also hired one Forsign Company (Based in Huwaii-USA) for our another project. they will provide consultancy from there itself and no visits will be made in india. what will be Tds rate and under which section.
will it make any difference if any of their representative visit India for Service providing.


15 August 2017 1 195 TDS applicable till the consultant becomes resident. 194 J TDS applicable after he became resident. 10% TDS applicable in both the case. 15CA 15CB applicable.
2 195 TDS applicable at 10% in both the case.

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 August 2017 Sir,

what would be the rate of TDS u/s 195 for payment to NRI Consultant.
Further, Since he will coming to india on buisness visa, so why would he became the resident of India.

Pls. Explain it briefly




16 August 2017 1 10% TDS to be deducted.
2 For the purpose of income tax only he will be resident if his stay in a financial year exceed 182 days.

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Querist : Anonymous

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16 August 2017 What is to be checked as per DTAA with US in this. Does it involve PE concept also

since he will coming to India for Business purposes.

16 August 2017 If he is coming in to India for business purposes and staying here then it will be PE.

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Querist : Anonymous

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Querist : Anonymous (Querist)
16 August 2017 in that case what will be the TDS rate to be applied.
will it be beneficial if we hire him as an employee only and design his structure according to our policy to save tax

16 August 2017 He is liable for TDS under salary head.




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Querist : Anonymous

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Querist : Anonymous (Querist)
16 August 2017 Sir, we are hiring him as a Consultant, so in that case also shall we should deduct TDS under Salary head.

16 August 2017 In case of consultant deduct TDS at 10% u/s 194J. He is liable to pay the balance fax and file ITR.



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