15 September 2010
An assessee is dealing in foreign package business. He organises foreign tours and collects fees from indian tourist. He tie ups with foreign travel agent to manage for Hotel & tour in abroad..
Indian assessee makes payment to foreign travell agent as and when he goes to foreign with the tour.
He makes the payment in foreign currencies which is purchased from india from foreign exchanger..
My query is whether sec 195 will be applicable to it ? or it will be considered as outright purchase and he will not be liable to deduct TDS..
18 December 2010
Kindly specify the country to whom such payment is being made.There is chance that TDS liability may arise if certain facts of the case are made more clear.
CAclubindia
