is tds dedutible on payments made by Foreign Investor

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Manoj Baby Daniel (Querist)
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05 January 2010 when Foreign institutional investor makes payment to a CA for professional services rendered in india, is tds deductible while making payment.?
Note the FII doesnt have PE in india nor opertions except for the investment they make in the indian stock markets through their custodian bank

Bhavesh

Bhavesh (Expert)
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05 January 2010 TDS is deductible.
TDS section mainly focuses on the residential status of the deductee.

The CA Firm (deductee) is resident in India.

So TDS is applicable

Manoj Baby Daniel

Manoj Baby Daniel (Querist)
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06 January 2010 YOU ARE WRONG MR BHAVESH
In respect of fees for professional services received from foreign companies or foreign law and accountancy firms, any fees paid through regular banking channels to any chartered accountant, lawyer, advocate or solicitor who is resident in India by non-residents who do not have any agent or business connection or permanent establishment in India may not be subjected to deduction of tax at source under section 194J.â€”Circular : No. 726, dated 18-10-1995

Bhavesh

Bhavesh (Expert)
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06 January 2010 Reading the Circular, it seems that I may be wrong.
I accept it.

Thanks for updating my info.

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