TDS and PAN applicability for foreign company payment

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This query is : Resolved

ANIL KUMAR (Querist)

24 December 2010 Dear All

our client is an Indian event management Company taking contract for event at Dubai. Our client required to take services like lodging, boarding, stage show , lighting etc. services from an Dubai based company and required to remit USD from India to Dubai. Dubai based company is foreign national for Indian context , have no PE in India, have no PAN in India I have certain questions :-
1.Whether this remittance is liable for TDS deduction in India ? if yes , rate of TDS.
2. foreign firm (Dubai based firm) is required to get PAN in India.
4. What are the DTA provision with this transactions
3. As a CA can we issue Form 15CB

Pls do the needful

Thanks

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)

25 December 2010 1 & 2 If the foreigner does not have PAN in India, then rates of witholding tax shall be 20% irrespective of the provisions of Income tax or DTAA, as appears u/s 206AA.
3. Practising CA are authorised to sign on the Form 15CB, then only the person / assessee can make the payment to the foreign vendor.

SERVICE TAX MAY ALSO ATTRACT UNDER DEEMED SERVICES.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

25 December 2010 I beg to differ since the money expended is being used to earn income from source outside India.Hence in view there is no liability to deduct TDS in the present case.

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