Services received from foreign company (usa)

This query is : Resolved

v.venkateswaran (Querist)
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13 August 2016 Clarification required on the following issues
• The Payment made to USA companies in foreign currency using company credit card during FY2015-16 amounting to Rs 1.50 lakhs
• PAN of the foreign companies not available.
• whether is it allowable expenditure if TDS is not made
• can TDS be paid now
• Whether to be reported to AO/Income Tax Officer, if so what is the procedure

nitin

nitin (Expert)
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14 August 2016 Hi Venkateswaran

What is the nature of payment you have made to the US companies?

v.venkateswaran

v.venkateswaran (Querist)
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14 August 2016 Information retrieval service from USA based company by ITES private Ltd company in India

v.venkateswaran

v.venkateswaran (Querist)
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14 August 2016 Information retrieval service from USA based company by ITES private Ltd company in India

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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16 August 2016 You need to verify whether the company has any PE (Permanent Establishment) in India. If they have PE, TDS has to be deducted. Also verify if there is any DTAA with the country to avoid double taxation.

v.venkateswaran

v.venkateswaran (Querist)
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16 August 2016 There is no PE in India.DTAA with USA available

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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16 August 2016 You need to follow the DTAA agreement. In most of the cases, TDS is not applicable

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