Tds for foreigners
This query is : Resolved
04 August 2011
Could you please guide me on behalf of some relatives. We (they) are based in Nepal. No office or PAN in India. We are agents for an Indian company for supplying their material directly to Nepalese importers. We understand that our work is done in Nepal, and the income arises in Nepal (not in India). So can the Indian company claim to deduct TDS on the basis of Section 206AA of Finance Act 2009. Can you provide me link to some govt. notification etc. which would provide me relief so that TDS is not deducted. - R. Mittal, B.Com., LLB.
04 August 2011
As per section 9 income arise or accure from india is taxable in hands of assess. In your case income arise from india bcz indian company will pay the lumpsum amount for providing service. You didnot have pan card that means 20% TDs should deducted
Message likes :
1 times
04 August 2011
As far as we are concerned, we work in Nepal, provide the service here, and so our income arises here. We think : Section 206AA of Finance Act 2009 is applicable to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB. This chapter provides for TDS deduction for incomes arising in India (whether for Indians or non residents). Our income arises in Nepal. For the Indian Company, it is the expense which arises. Please advise friends.
04 August 2011
its sales promotion expenses or commission of sales for indian company which is paid to yourself and the same is liable for TDS.
if you import the goods directly from indian company and sale/transfer afterwards in nepal, then indian company does not have to deduct TDS.
if you import the goods directly from indian company and sale/transfer afterwards in nepal, then indian company does not have to deduct TDS.
Message likes :
1 times
04 August 2011
No No. This is serious. I need to have a concrete reply.
05 August 2011
IN TERM SOF SECTION 195 TAX IS DEDUCTIBLE ONLY IF NON-RESIDENTS INCOME IS LIABLE TO TAX IN INDIA
IN THIS CASE THE INCOME IS NOT LIABLE TO TAX IN INDIA HENCE NO TDS IS REQD
SECTION 206A WILL COME IN PICTURE ONLY IF TAX IS DEDUCTIBLE
CA MANOJ GUPTA
JODHPUR
09828510543
IN THIS CASE THE INCOME IS NOT LIABLE TO TAX IN INDIA HENCE NO TDS IS REQD
SECTION 206A WILL COME IN PICTURE ONLY IF TAX IS DEDUCTIBLE
CA MANOJ GUPTA
JODHPUR
09828510543
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
