LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds applicability

DHIRAJ KUMAR (AUDIT SUPERVISOR) (27 Points)

19 June 2015

If a foreign consultant serve the professional service in foreign country and payment is payable from India. Is this transaction liable to TDS in India.

for Example : A consultant resident of Sri Lanka and serve the service at Myanmar. His fees will be payable by Indian domestic company, is this transaction liable to deduct TDS, when consultancy fee will paid by Indian company.

Reply
Follow
Share

10 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 19 June 2015

If service is rendered outside India, then TDS is not applicable.

1 Like

anjali (employee) (36 Points)
Replied 19 June 2015

service provided and received outside India no tds is applicable

gupta (Accountant) (305 Points)
Replied 19 June 2015

Who will book expenes. If the Indian company book the expenses then I think TDS will be applicable.

Gaurav (student) (22 Points)
Replied 19 June 2015

Service rendered ouside india. so tds is not applicable

Walter Z Peter (MD) (30 Points)
Replied 19 June 2015

when NRI sell property in India on long term capital gain basis ,the buyer insist for TDS on the sales consideration at 20% basis.what are other charges such as EC,SHEC and surchages.Considering sales price 2,75,00000 could you let me know total amount on TDS account.

gowtham (Audit executive) (70 Points)
Replied 19 June 2015

tds will be deducted based on DTAA between the countries( double taxation avoidation agreement),while paying money to foreign consultant you have to refer DTAA between the countries and have to file 15CA nd 15cb.

Z ( ) (2960 Points)
Replied 20 June 2015

The service has been rendered outside India by a non resident, but the payment has been made payable from India

Therefore I THINK that S.5(2) would be applicable and according to which, such shall be deemed to be an income and hence TDS provisions will become applicable.

"Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person "

(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

1 Like

Ramanuj (Accountant.) (834 Points)
Replied 20 June 2015

Dear all

I think tds is deducted in india. you have paid after TDS Deducted.

Thanks & regards

ramanuj

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 21 June 2015

Since income is received from India. So it would be deemed as income arised in India as per section 9. So TDS should be dedcuted on payment.

ashish (article) (151 Points)
Replied 21 June 2015

As per Income Tax Act 1961..... ---sub section (2) of section 5: income chargeable to above act in case of non resident includes.................income received or deemed to be received in India during previous year............... ------section 195 : tds shall be deducted on payment to non-resident being interest or other sum chargeable under said act........... -----section 40(a)(i) : if tds has not been deducted on payment (being interest or technical services or other sum chargeable under income tax act) then such expense will be disallowed under this section.....................................CRUX; @ dheeraj ....tds shall be deducted in your case