tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2010 Dear all,

one of my client has a consultant in newyork ( the consultant gets business for my client). My client pays a fee of 5000$ per month as consultant fee. does my clint need to deduct tds from consultancy charges ?. ( my client ( who is a CA ) argues that as the income acrue and arise in newyork, tds is not required to be deducted ). Please help me out

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 April 2010 THERE IS POINT THAT SERVICE RECEIVED OUTSIDE INDIA AND PAYMENT MADE OUTSIDE INDIA AND HENCE TDS NOT TO BE DEDUCTED.

AS WE KNOW FOR A NON-RESIDENT IF INCOME ACCRUES OUTSIDE INDIA AND RECEIVED OUTSIDE INDIA HE DONT HAVE TO PAY TAX.

I THINK HE HAS A VALID POINT.

LET OTHER EXPERTS GIVE THEIR OPINION.

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