Payment to company located in tax heaven country

This query is : Resolved

shalin (Querist)
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05 April 2014 My client is making payment to a foreign company having no permanent establishment in India. He is making payment

in leiu of professional services. Does he need to pay any TDS on the amount remitted?

the company is situated in Singapore ?

and another company which is located in Dubai having branch in india .does we need to deduct TDS if payment is made to such indian branch and money is deposited in bank account of foreign company?

Rupesh Jain

Rupesh Jain (Expert)
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05 April 2014 payment made of services to non resident then you have to deduct tds .
if have PAn then @ 10% otherwise it will be deducted @ 20%

shalin

shalin (Querist)
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07 April 2014 please correct if i am wrong,
according to my understanding if foreign company is not having pe in india than business income of such foreign company would not be liable to tax and we hav to choose what ever is beneficial to assesse ie either provison of income tax or DTAA ..hence no tax is required to be deducted in first case

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