Applicability of tds

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Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2014 Goods purchased from foreign countries under DTAA will attract tds provisions or not when payment is made for purchase of those goods??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

15 September 2014 TDS not attracted on purchase of goods.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Sir thanks for responding. now i had another doubt what if we purchase capital goods from foreign trader,Tds is attracted or not?/if attracted at what rate

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

16 September 2014 As stated above, TDS not attracted on Puchase of goods be it capital or revenue.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

16 September 2014 whether capital or otherwise no tds is applicable in case of purchase.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 but as per sec 195 of income tax act we need to deduct tds for any payments made to a person,not being a company,or to any foreign company

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

16 September 2014 yes but sec 195 does not cover transaction involving puchase and sale of goods

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