Section 195

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2015 Our company is engaged in manufacture of terminals & participate in various exhibitions held in foreign countries like UAE, Germany, Singapore etc. We make payments to foreign company outside India for various exhibition charges. Further, the foreign companies are not having any PE or business connection in India.

Kindly advice whether the TDS is deductible on such transactions or not with detailed analysis in support of your stand.

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

30 December 2015 No TDS applicable on such payments. The service is rendered out side India by Non resident hence no TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2015 Sir can you please justify your answer with detailed analysis

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 December 2015 TDS not applicable on income not taxable in India. Here the foreign company is non resident. As per Indian income tax act foreign income earned by non resident is not taxable in India. Here the services rendered out side India by non resident company not taxable in India.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2016 Thank you............

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now