05 June 2012
INDIAN INSURANCE COMPANY WANTS TO MAKE PAYMENT TO UK BASED COMPANY WHICH IS HAVING PAN OF INDIA. NATURE OF PAYMENT 1) INSURANCE CLAIM IN USD 2) SURVEY FEES (PROVIDED IN BOMBAY) IN GBP
IS THERE ANY LIABILITY FOR TDS ? AND AT WHAT RATE?
As per section 195 of the income Tax Act, 1961 TDS is required to be deducted on amount of income chargeable to tax in India rather than total payment.
So first you see whether the amount which you paid is taxable in india if yes than liability to deduct tax @ 10%.
I Think survey fees paid to the UK based company is taxable in india and regarding the insurance claim first we see about the location of the assets
With the hope that this information might be helpful to you
CAclubindia
