Applicability of Income Tax TCS on export services

This query is : Resolved

Quick Summary

Discussion is about whether TCS/TDS applies on export of services where a tipper is hired to a Bhutan-based foreign company. Clarification: since services are rendered outside India and income is not taxable in India, no TDS or TCS is applicable under the Income Tax Act.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)
Follow

02 January 2026 Dear sir/s, we hereby need your suggestion for applicability of Income Tax TCS on export services, one of my client is hired his Tipper to foreign company Bhutan, is the services applicable for any TDS/TCS under Income Tax Act, kindly inform me.

Thanking you sir,

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

02 January 2026 For hiring a tipper to a foreign company in Bhutan, where services are rendered outside India and payment is received from abroad, neither TDS nor TCS is applicable under the Income-tax Act. The income is not chargeable to tax in India, hence no withholding obligation arises.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)
Follow

02 January 2026 Thank you very much sir, for your valuable advise

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now