Do we have to pay TDS to Japan,
This query is : Resolved
09 December 2021
We are very small pvt ltd company, we are working with Japanese company.
we are new company need your support to understand the rule better.
recently our client asked us that they will be deducting TDS Under ARTICLE 12
ROYALTIES point 4 & 6.
our nature of business is, we help our client to manufacture raw materials, and maintain quality control in India and export the raw materials/products to other parts of the world through us or manufacturer.
request the experts give the opinion on TDS.
1. Do we have to pay TDS in Japan under ARTICLE 12, ROYALTIES point 4 and 6?
2. If we pay the TDS in Japan, can we get the rebounds in India?
3. what are the advantage and disadvantage if we pay in TDS?
Please help me to understand
Thank you in advance.
we are new company need your support to understand the rule better.
recently our client asked us that they will be deducting TDS Under ARTICLE 12
ROYALTIES point 4 & 6.
our nature of business is, we help our client to manufacture raw materials, and maintain quality control in India and export the raw materials/products to other parts of the world through us or manufacturer.
request the experts give the opinion on TDS.
1. Do we have to pay TDS in Japan under ARTICLE 12, ROYALTIES point 4 and 6?
2. If we pay the TDS in Japan, can we get the rebounds in India?
3. what are the advantage and disadvantage if we pay in TDS?
Please help me to understand
Thank you in advance.
09 December 2021
1 yes, you have to pay TDS in Japan under fees for technical service under Article 12.
2 yes, relief can be claimed for the TDS in the tax payable in India ( tax payable in India can be reduced to the extent of TDS in Japan)
3 No advantage or disadvantage. You have to comply with tax rules.
2 yes, relief can be claimed for the TDS in the tax payable in India ( tax payable in India can be reduced to the extent of TDS in Japan)
3 No advantage or disadvantage. You have to comply with tax rules.
Message likes :
1 times
09 December 2021
Thank you so much for your Quick reply.
1. Even though we are not giving any technical service to them, is it mandatory to pay TDS in Japan or can we request the Japanese company to pay us fully and pay the taxes in India under Article 7.
2.We are also helping other clients in similar manner, they have not Deducted any TDS from us.
3. If we have to pay the TDS of 10% in Japan doesn't it disrupt the cash flow for the exporter to export the product to parent company?
4.What is the best way to not pay the TDS in Japan and pay the taxes India in that way we wont be having cash flow problem.
5. How long it takes for us claim the TDS in India, what are the documents that we take it from Japanese company?
Thank you so much R Seetharaman
1. Even though we are not giving any technical service to them, is it mandatory to pay TDS in Japan or can we request the Japanese company to pay us fully and pay the taxes in India under Article 7.
2.We are also helping other clients in similar manner, they have not Deducted any TDS from us.
3. If we have to pay the TDS of 10% in Japan doesn't it disrupt the cash flow for the exporter to export the product to parent company?
4.What is the best way to not pay the TDS in Japan and pay the taxes India in that way we wont be having cash flow problem.
5. How long it takes for us claim the TDS in India, what are the documents that we take it from Japanese company?
Thank you so much R Seetharaman
09 December 2021
1 Quality control is a technical service. It's mandatory to pay TDS in Japan.
You can't make any such request.
2 Such TDS may not be there in other countries.
3 No cash flow disruption. You reduce advance tax payment to the extent of TDS.
4 Best way' suggested above.
5 Reduce the amount in advance tax.
Obtain TDS certificate claim it in ITR.
You can't make any such request.
2 Such TDS may not be there in other countries.
3 No cash flow disruption. You reduce advance tax payment to the extent of TDS.
4 Best way' suggested above.
5 Reduce the amount in advance tax.
Obtain TDS certificate claim it in ITR.
09 December 2021
Thank you so much.
it's a great help to making me to understand the rules.
1 As apart of this we might also be exporting the product to Japan and European countries, but we will be paid from Japan.
Ex: If we rise invoice for 10lakh for exporting the product will they collecting TDS on it.
2. will the TDS to be collected only against the technical service invoices.
it's a great help to making me to understand the rules.
1 As apart of this we might also be exporting the product to Japan and European countries, but we will be paid from Japan.
Ex: If we rise invoice for 10lakh for exporting the product will they collecting TDS on it.
2. will the TDS to be collected only against the technical service invoices.
09 December 2021
1 TDS not applicable on export of goods.
2 yes.
2 yes.
Message likes :
1 times
09 December 2021
Thank you So much.
1. Will the TDS be applicable on research and procure materials in India.
2. Will the TDS be applicable for business development and managing the other companies if we are receiving the payments from Japan
1. Will the TDS be applicable on research and procure materials in India.
2. Will the TDS be applicable for business development and managing the other companies if we are receiving the payments from Japan
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- TDS ON CASH WITHDRAWALS...
- Form 10BD Filling
- Not able to file ITR
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
