Application of tds on payment to foreign party
This query is : Resolved
12 January 2013
Dear all,
Is tds applicable on commission on agency service paid to a foreign party paid from India???
Thanking in anticipation
Is tds applicable on commission on agency service paid to a foreign party paid from India???
Thanking in anticipation
13 January 2013
No
Anuj
Femaquey@gmail.com
Anuj
Femaquey@gmail.com
14 January 2013
Sir,
Can you plz explain your answer.
As per sec 40(a) of Income Tax Act,Notwithstanding anything to the contrary in sections 30 to 16 [38], the following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”,—
(a) in the case of any assessee—
[(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable,—
(A) outside India; or
(B) in India to a non-resident, not being a company or to a foreign company, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200 :
Can you plz explain your answer.
As per sec 40(a) of Income Tax Act,Notwithstanding anything to the contrary in sections 30 to 16 [38], the following amounts shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”,—
(a) in the case of any assessee—
[(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable,—
(A) outside India; or
(B) in India to a non-resident, not being a company or to a foreign company, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200 :
14 January 2013
Kindly read sec. 5 (2)which provides for charge ability of income before taxation in India.
Commission income is neither accruing or arising nor is deemed to accrue or arise in India.
Anuj
Femaquery@gmail.com
Commission income is neither accruing or arising nor is deemed to accrue or arise in India.
Anuj
Femaquery@gmail.com
14 January 2013
Thankyou sir for your answer whioch helped me to clarify my doubt completely.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Error in uploading Form 10BD
- Banking Related Issue
- Difff in ais receipts and gst turnover
- Loss of interest in PF transfer from EPFO to Trust
- ITR-3 File/Error Found
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Gst on travel by air for business purposes
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
