FOreign payment
This query is : Open
24 January 2009
Comrades,
Pl. clarify...
My client needs to pay some amount to Foreign citizen..(as business commission)
How this amount to be paid, and what are the tax implication.
The amount could be roughtly INR Rs.1 lac
Pl. clarify...
My client needs to pay some amount to Foreign citizen..(as business commission)
How this amount to be paid, and what are the tax implication.
The amount could be roughtly INR Rs.1 lac
24 January 2009
Check with section 195 of The Income Tax Act,1961 and see whether the case fit into the conditions therein. Also provisions of DTAA with that country may be looked into.
25 January 2009
Hi, Regarding Income tax my friend has already clarified.
With respect to Service tax this would be subject to service tax under Import of services rules and being a recipient service tax has to be paid under BAS ( Business Auxiliary Services as it falls under the 3rd category, in relation to business and commerce. Once paid this amount can be availed as cenvat input credit or you can seek refund in terms of the provisions.
Should you need for clarification, provide inputs on the nature of transaction and the reason for payment of commission
With respect to Service tax this would be subject to service tax under Import of services rules and being a recipient service tax has to be paid under BAS ( Business Auxiliary Services as it falls under the 3rd category, in relation to business and commerce. Once paid this amount can be availed as cenvat input credit or you can seek refund in terms of the provisions.
Should you need for clarification, provide inputs on the nature of transaction and the reason for payment of commission
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
- Gst credit note by supplier
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- GST on reimbursement of expenses
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
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
