Remuneration to Foreigner for Technical service

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This query is : Resolved

Vijay Kumar (Querist)

28 January 2011 Sir,

Could you please explain how to make payment t/w remuneration to foreigner against Technical services on monthly basis. He has been in India on the basis of Visiting/Business VISA.
Note: He is an Individual and not from any company or firm.

What is the TDS applicable in this case.
I hope 20% because he doesn't have a PAN Card. or 10% u/s 94J.

Any other mandatory documents to be maintained that shall help at the time of Audit.

Please do needful.

regards,

Vijay Kumar

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

29 January 2011 Please first check the residential status of the consultant. If he has spent or is going to spend 182 days or more in India then he shall become resident and shall be liable to deduction u/s 94J otherwise 195.

Also encourage the consultant to obtain PAN so that the TDS is deducted at the lower rate .

Please copy of his passport , visa and qualification records.

Anuj
9810106211

Vijay Kumar

Vijay Kumar (Querist)

31 January 2011 Dear Sir,

Thank you for your advice.

He stays less then 182 days, and as I early said he is with Visiting VISA and keeps flying between India & Srilanka.

please advice me that Any other mandatory documents to be maintained that shall help at the time of Audit.

regards,

Vijay Kumar

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

31 January 2011 In the case of his stay is less than 182 days then the relevant article of treaty needs to be studied. For that kindly see the relevant DTAA.

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