Remittance made to foreign clients for the indian project

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Pooja Varshney (Querist)
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05 June 2012 Hello Experts
Very good morning all of you !!

I have a query related with return filing. suppose we are remitting the money to our foreign clients against importing some technical services which are using in india & simultaneously we are deducting the TDS under the section 195 @ 10.5060 (Some times 10.30) as adviced our CA.

Now my question is that should they (Foreign clients) require to file Income tax return in india ? is it mandatory for them to file the return in india?
Pls advise.....

Pooja Varshney

Pooja Varshney (Querist)
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05 June 2012 Please do reply I really confused.....................

Amol S Joglekar

Amol S Joglekar (Expert)
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05 June 2012 No it is not mandatory for them to file the return. ( By the way are you deducting service tax TDS as well?)

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Pooja Varshney

Pooja Varshney (Querist)
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05 June 2012 Actually they are having PAN no. and are receipt in a notice from indian govt for not to file the income tax return.

Arihanth Jain

Arihanth Jain (Expert)
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05 June 2012 Normally, no need to file ROI in Income if all taxes are deducted in form of tds.

Please refer the provisions in the notice for better analysis.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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25 December 2012 There is no exemption for non submission of return by foreign entity.

However since TDS has already been deducted there should be no major issue apart for penalty for non.filing of IT Return.

Anuj
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