Interpretation of tds 194j

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Sandeep (Querist)
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17 July 2013 Hi All,
Section 194J says Any Person responsible for paying any amount.......Definition of Person includes foreign company..
My client in India is providing technical services to company incorporated in USA.
MY client is receiving in dollars..

I have doubt in this transaction.
Whether Foreign company is liable to withhold the tax....

I am expecting the answer based on the reading of act..
As Foreign company is included in Person as per income tax.....
Logically we can say he wont come under Indian income tax jurisdiction...
But Reading of definition of person and section 194j is confusing me...

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2013 clearify where ur client is providing service ,in india or outside in india?

Sandeep

Sandeep (Querist)
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17 July 2013 He is providing service in india only....its an export of technical servies

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2013 yes foriegn company needs to dedcut tax u/s 194J in ur case as he is paying to resident ( ur client).

Sandeep

Sandeep (Querist)
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17 July 2013 Hi Kindly help me where in section says it should be resident......i am having bare act it say any person only....any case laws or any supportings kindly let me know.

Sandeep

Sandeep (Querist)
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18 July 2013 But Foreign company dont have any PE in India. How it has to remit to government.
It wont come under jurisdiction of India Income Tax Authority

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 July 2013 whether it has pe or not is not mentioned in 194J hence going by -ve analogy if any person ( including for co. )makes any payment as desceibed in 194J in india then it is statutorly required to deduct tds under this section.

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