Tds o n space rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2011 Dear All

our company wants to make payment to Srilanka towards space rent for a exhibition to be held.
Please let me know the normal tds for the same and also the applicable TDS for this foreign remittance as the recipient doesn't have PAN ( 206AA applicable?)

Thanks in advance'

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 July 2011 As the payment is being made in Srilanka, and it is made to some Srilankan, No TDS is required to be deducted as the income is arising there only.

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2011 Dear paras

But we are transmitting the money from India as an advance rent before the exhibition . Pls let me know the TDS applicability

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 July 2011 It does not make any difference whether the payment is being made in advance or it is made after the exhibition.

The person, purpose and place of accrual of income is relevant for TDS.

This is no doubt a payment to Non Resident,
but that non resident is generating the income out of India. As such he is not having any tax liability here.

The purpose behind TDS is to collect tax at the time of payment or credit of the income when certain income is taxable in India, so that the NR may be relieved from the burden of filing tax return in India.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2011 Dear Paras
Thanks for the reply. While remitting , i think we have to submit form 15CB and 15CA to the bank. pls let me know waht we have to mention in the forms as purpose of remittences

Thanks

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