Tds in foreign remmittance

This query is : Resolved

Harsh Khakhi (Querist)
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01 February 2012 What will be the rate of TDS, when payment in foreign currency is done for Repairs of Machinery sent to USA from India?
What clause of DTAA is applicable?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2012 In this case no TDS is required to be deducted as the income of the mechanic of USA can not be taxed in India, specially when the income is accruing him in USA as well as being received by him in USA only.

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If the USA Co. has an office or PE in India through which this process is being handled, TDS is required to be deducted.
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