Tds on fees paid to non resident
Querist : Anonymous
Querist : Anonymous
Prasad Productions case
A special bench of the Chennai tribunal ruled that tax needs to be withheld only on payments made overseas that are taxable in the hands of the non-resident. However, that ruling is contradictory to the Karnataka High Court decision in the Samsung case, which said that every overseas remittance had to withhold tax unless it had a nil withholding order from the Revenue Department.
The Chennai Tribunal, however, further observed that it is up to the taxpayer to decide whether a transaction is taxable. If not there is no need for a nil withholding order.
Van Oord case
In this case, the Delhi High Court ruled that withholding taxes apply only to payments that are taxable in India.
Services rendered by non resident outside India is not taxable in India.
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