TDS deductions on Foreign Payments...

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Sumeet

Sumeet (Querist)
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26 March 2008 dear sir,

is TDS deducted on foreign payments?

sumeet

Jitender

Jitender (Expert)
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26 March 2008 yes .

Prasad R

Prasad R (Expert)
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27 March 2008 yes TDS on foreign payments is governed by SEC-195 of the Income Tax Act,1961.

Regards
Prasad.R

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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27 March 2008 Yes. Under sec 195

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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27 March 2008 Yes Sec 195

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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27 March 2008 YES U/S 195

R.V.RAO

R.V.RAO (Expert)
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27 March 2008 UNDER CLAUSES (a) TO (i) of SECTION 195(PAYMENTS OF OTHER SUMS TO NON RESIDENTS ), TDS IS APPLICBALE EITHER AT RATES STIPULATED UNDER INCOME TAX ACT OR AT RATES SPECIFIED IN ADT(AVOIDANCE OF DOUBLE TAXATION) AGREEMENT ENTERED INTO BY GOVT. OF INDIA UNDER SEC 90 WHICHEVER IS LOWER.
R.V.RAO

Sumeet

Sumeet (Querist)
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28 May 2008 thank for all your replies. but i am furnishing more details.

is TDS applicable on foreign payments for webhosting ?

my agruments :

a. the company is based in USA and does not have any Permanent Establishment in India.

so no income accrues in India.

b. Service is rendered abroad and payment is also made in foreign currency directly abroad.

c. there was a case where an Indian company WIPRO subscribing to an Online database of a foreign company which is maintained by the foreign company and the ruling was that NO TDS is payable on that payments. does the same apply to web hosting?

Sumeet

Sumeet

Sumeet (Querist)
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28 May 2008 please open

Jitender

Jitender (Expert)
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11 April 2009 tds is applicable as per dtaa.

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