Foreign Remitance Sales Commission

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This query is : Resolved

BISWA RANJAN JATI (Querist)

29 April 2010 HI There

we want to remit foreign currency for rendering designing & development charges by a party on behalf of us in france.Kindly let me know the procedures for it and wheather TDS will be deducted from the payment and what documents/ forms will be executed/formality will be completed.

seeking for an early resolve of the matter.

Thanks in advance.

taxindiaconnect

taxindiaconnect (Expert)

29 April 2010 As per section 5 the income of NR should have been either be received or deemed to be received in India or should be accrue or deemed to accrue in India for such income to be taxable in India.

As per section 9 the income of a resident by way of fees for service rendered would be treated as technical fees and will be deemed to accrue and arise in India, the income will be taxable in India with in the meaning of deeming provision under section 9 of the Act as the explanation 2 to section 9 (1) (vii)

However As per section 90 of IT Act one can take the benefit of provision of Double taxation Avoidance Agreements ( DTAA) Currently India has DTAA’s with more then 75 Countries.

Since in your query it is not clear that what kind of services are being provided by resident company in the absence of such information it is difficult to give any concrete advice, however from the language body of the query it seems that apparently TDS is applicable under treaty between India and France @ 10%.

The procedure is that you should obtain form no 15CA from a Chartered accountant and upload the information online in form 15CB.

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