Re : tds certificate to foriegn professional

This query is : Open

chitrasen parida (Querist)
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19 November 2012
Dear Expert,

A foreign professional person is providing prof. services to our company. so how to deduct tds on payment to him & the procedure in issue of TDS certificates .

pls. answer it.

Sunny Sonwal

Sunny Sonwal (Expert)
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19 November 2012 You have to clear first what is the residential status of that professional at the time of payment.

If he would be foreign national,you have to deduct TDS under section 195(h) @ 10%.

And if he would be Resident of India then section 194(J) will be applicable @ 10% but threshold limid would be Rs 30000.

But if that professional does not have PAN, you have to deduct tax @ 20%.

And if he does not have PAN number TDS certificate will not be provided.

V K Bajaj

V K Bajaj (Expert)
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20 November 2012 Mr Parida

The fact or Rule is that you cannot remit the amount in foreign currency without following the procedure of Form 15 CA and 15CB.

CA certification is required. CA will certify as how much TDS is to be deducted. Gross up facility is available so that Invoice amount is remitted to foreigner.