Deduction of tds from foriegn non-resident
This query is : Resolved
Ankit Ringasia
(Querist)
06 June 2012
Do we have to deduct TDS on making payment to foriegn non-resident for Legal Consultancy?Legal consultancy is for personal use and the expense is not claimed as business expense.
Amol S Joglekar
(Expert)
07 June 2012
Yes. You may not even be having TAN. So apply for that.
Amol S Joglekar
(Expert)
07 June 2012
You also have the choice not to apply for TAN and still pay the TDS.
Ankit Ringasia
(Querist)
07 June 2012
thanks for the reply mr. Amol but as you may notice the expense is not a business expense so still i have to deduct TDS?
Ankit Ringasia
(Querist)
07 June 2012
thanks for the reply mr. Amol but as you may notice the expense is not a business expense so still i have to deduct TDS?
CA Rajendra Purohit
(Expert)
08 June 2012
In the above mentioned case TDS is required to be deducted even if Tax audit was not required in the preceding year. In this case whether or not services are used in business/professsion. Hence, it is advised to deduct TDS us/ 195 for payments to Non-resident. However, if the person has permanent establishment in India then you can also take the shelter of it.
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CA Rajendra Purohit
(Expert)
08 June 2012
In the above mentioned case TDS is required to be deducted even if Tax audit was not required in the preceding year. In this case whether or not services are used in business/professsion. Hence, it is advised to deduct TDS us/ 195 for payments to Non-resident. However, if the person has permanent establishment in India then you can also take the shelter of DTAA.
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