Tds for foreign companies
This query is : Resolved
Durga Prasad Ray
(Querist)
30 December 2012
A foreign company(based at Hong Kong,having no established in India at all) is going to supply two video cameras(sourced from Japan) to an Indian Branch of another foreign Company. Now the end user is saying that it will deduct 20% tax as TDS as the foreign company(Hong Kong Based) is unable to provide the PAN card.And this is a permissible activity under income tax act, 1961 [Reference Explanation 4 to 9(1)(iv)] and since, Beneficiary do not have PAN in India. Tax should Deduct @ 20% (Reference Section 206AA read with Section 195 of Income Tax Act, 1961].
My question is whether the above activity is a geniunie tax deduction or not...
My question is whether the above activity is a geniunie tax deduction or not...
31 December 2012
TDS is not applicable on sales and purchases.
TDS is applicable as and when payment is of INCOME in nature.
TDS is applicable as and when payment is of INCOME in nature.
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07 January 2013
The expert is correct the TDS @ 10% is to be deducted on contract if at all executed
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