TDS - Foreign Remittance
This query is : Resolved
17 June 2009
Is some body send me list of expenses which can be remitted without deducting TDS on Foreign remittence
CA. B.SRINIVASULU
(Expert)
17 June 2009
For foreign remittance the procedure to be followed is
Step 1 ; Check to which country you are paying the amount.
Step 2 : Find whether Doutble Taxation avoidance agreement has been entered to that country.
Step 3 : If entered then the tax has to be witholded (which is nothing but tds deduction in ohter form) as per the percentages stated there.
Step 4 : If no DTAA is there then you have to deduct tax as per section 195 of the income tax.
Note : You can follow DTAA or Section 195 even if DTAA is there. But it is advicable to follow DTAA only if it exists.
Step 1 ; Check to which country you are paying the amount.
Step 2 : Find whether Doutble Taxation avoidance agreement has been entered to that country.
Step 3 : If entered then the tax has to be witholded (which is nothing but tds deduction in ohter form) as per the percentages stated there.
Step 4 : If no DTAA is there then you have to deduct tax as per section 195 of the income tax.
Note : You can follow DTAA or Section 195 even if DTAA is there. But it is advicable to follow DTAA only if it exists.
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