Section 195

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Foreign company is providing technical services to an Indian company..so can it ask to make the payment of fees for technical services to a local vendor in INR?

Amol S Joglekar

Amol S Joglekar (Expert)

10 June 2015 Yes, the terms of payment and/or mode of payment can take such a shape.
sec 195 will come into play, in either case, for the simple reason that in the books of account will possess the "Foreign Co's Account " and not the local vendor

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 will tds be deducted ? at what rate? Foreign company is having PAN, TRC,but is having no permanent establishment in India

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 and billing in INR not an issue? i mean can foreign company ask to do billing INR? in this case what about tds?

Rupesh Jain

Rupesh Jain (Expert)

10 June 2015 you can make the payment to any one but you have to deduct the tds u/s 195

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 can foreign company ask to do billing in INR?? WHAT would be the tds rate?

Rupesh Jain

Rupesh Jain (Expert)

10 June 2015 no foreign company make the invoice from its currency not way . you have to deduct the tds when you payment or credit the a/c which ever is earlier.

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