Section 195
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2011
I have to pay professtion fees to a firm in tanzania for due diligence of a company which I (indivisual) suppose to purchase.
the appointment letter is issued in tanzania only.the fees is USD 2500.
I do not have any firm to which tax audit is applicable.
In this case should I deduct TDS form this fees (the firm is not having any business establishment in India)? please guild.
the appointment letter is issued in tanzania only.the fees is USD 2500.
I do not have any firm to which tax audit is applicable.
In this case should I deduct TDS form this fees (the firm is not having any business establishment in India)? please guild.
CA PARAS BAFNA
(Expert)
20 July 2011
In this case income is received by a non resident for the work undertaken in Tanzania. Meaning thereby the income has accrued out of India.
In my view, there is no TDS liability arises to you, as the Professional's income is not taxable in India.
In my view, there is no TDS liability arises to you, as the Professional's income is not taxable in India.
Arihanth Jain
(Expert)
21 July 2011
As per article 16-Independent personal services, of the DTAA with Tanzania the above income should not be taxable in India.
However I just wanted to quote recent explanation added to sec 9 as per which the above income if falls under fees for technical services shall be deemed to be accrued in India whether or not the services are rendered in India.
So benefit from DTAA can be availed.
However I just wanted to quote recent explanation added to sec 9 as per which the above income if falls under fees for technical services shall be deemed to be accrued in India whether or not the services are rendered in India.
So benefit from DTAA can be availed.
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