IS TDS APPLICABLE...............?

This query is : Resolved

Venkatesha.J (Querist)
Follow

12 February 2010 Royalty payment i.s forign remittance whether we have to deduct TDS including of service tax ( Gross amount) or excluding of service tax( on net amount)

Kindly suggest.

CA Shishir

CA Shishir (Expert)
Follow

12 February 2010 TDS has to be made on the entire amount billed. There is no question of excluding any taxes

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

12 February 2010 if payment is made to foriegn party which has no PE (permanenet establishment) in India and payment is directly to party in foreign then no TDS u/s 195(2).

Bimal Thacker

Bimal Thacker (Expert)
Follow

12 February 2010 Dear Shishir Sir,
I have one doubt,
Suppose in above case payment of Service tax liability is on remitter (Indian assessee) like service tax on GTA, then by deducting TDS only on Royalty payment the compliance of TDS can be fullfil?
As I have seen then in case of freight payment in which company is paying service tax, Tax is deducted only on freight amount and not on service tax which company has paid.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now