Tds deduction

This query is : Resolved

Srikanth Sairaman (Querist)
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27 June 2014 Dear Sir,

I have one Query on TDS Deduction.

Our Back office Located in India and our Headquarters located in Hongkong. We are making the Vendors payments from India which was spent in India office.

Payments like International/Domestic Air Tickets , Rent for India Office etc., We are deducting TDS on Service charges on booking the Air tickets.& Rent

In case if the payment made directly from our Head quarters (Hongkong) for the above mentioned payments whether TDS is Applicable?

CA Madhvi

CA Madhvi (Expert)
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27 June 2014 No tds is deductible when payment is made by non resident to resident where source of payment is outside India.
but it is advisable in present case to continue to make payment from India and deduct TDS thereon. as such payments are totally taxable in India and if payment would be made by non resident then it would go out of tax net.

Rupesh Jain

Rupesh Jain (Expert)
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27 June 2014 you can make the payment form out side india to indian vendors. TDS applicable as per indian income tax act.

but your business in india and for your exp. you have to deduct the tds as per the indian income tax ACT -1956. otherwise your exp. will disallowed.

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