Non Resident Taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 Indian Comapany made a Payment of $35,000 to NRI(relative of Director) for the Consultancy given in Foriegn Country(saudhi).

1.whether TDS has to be deducted or Not u/s. 195.

2.Suppose If deducted is there any possibilty to file return of Income in India for NRI(Pan Available here).

3. If Possible how we file that return as per IT.

Arihanth Jain

Arihanth Jain (Expert)
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01 July 2011 My views to your queries:
1. Yes, tds needs to be complied u/s 195. However check with DTAA for any favorable options.
2. Yes, if PAN available surely you can file a return.
3. Return needs to be file by NRI.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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03 July 2011 The question is where are the services being used, if it is in India then TDS should be there. Also as per my knowledge Saudi treaty doesn't have a FTS clause hence no TDS should be there.

Anuj
091-9810106211

Arihanth Jain

Arihanth Jain (Expert)
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04 July 2011 I do agree.
Please check if the service falls under the list mentioned Article 14 of the DTAA with Saudi Arabia. If so then the services may not be taxable depending upon having a fixed base or the number of days stay in India.

If not the income should be chargeable to tax (as per explanation of Sec 9(2) of the I T Act) whether or not the services are not provided in India; whether or not there exists a business connection.

Other views are also welcome.

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