TDS

This query is : Resolved

CA Keyur Shah (Querist)
Follow

01 June 2009 Hi,
A person is coming from o/s India for repairing a machine in India. The foreign company gives a proforma invoce which contains followings expenses.

1. Eng. person Travelling $800
2. Service charge $5000
3. Daily allowance of Eng. $1000
4. Air tickets, Hotel etc. $1500

Payment is made in advance.
Whether the co. has to deduct TDS ?
If yes, Under which section & on which amount..

chetan soni

chetan soni (Expert)
Follow

01 June 2009 For this you need to follow the link stated below:

http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section195.htm

TDS needs to be done on $8300 i.e the entire amount. In case foreign company is provided the details of Air ticket hotel charges then this can be removed from the taxable amount.

CA Keyur Shah

CA Keyur Shah (Querist)
Follow

01 June 2009 Bt sir which rate is appicable? If u/s 194C treated as a contract then 2.266% or If considered as Technical Fees then u/s 194J by 11.33%

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok