Import of machinery

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Monika (Querist)
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24 April 2017 Sir,

A pvt Ltd. co. has imported a machinery from Singapore.The Singapore Co. is not having permanent establishment in India but the imported machinery can be acquired from the custom port in India.
My question is whether such remittance to the foreign country is taxable in India as per Section 9 of the Income Tax Act and if yes, any TDS is deductible or not in India.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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24 April 2017 No, TDS is not required to be deducted.

TDS is deducted when we avail services whether from India/out of India, TDS is not to be deducted on purchase of machinery/goods/material and in your case machinery is imported and same will become part of fixed asset, hence TDS is not required to be deducted

Monika

Monika (Querist)
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24 April 2017 Please tell me whether foreign remittance on purchase of machinery is taxable in India ??

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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24 April 2017 No, because that co. don't have any permanent establishment in india

Monika

Monika (Querist)
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24 April 2017 thank you for the reply

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