banner_ad

TDS on Foreign Payment

This query is : Resolved 
Profile Image

Profile Image

(Querist)
08 November 2010 An Indian Company PQ Ltd has its Branch AB Ltd in New York. X Ltd. a Foreign company renders Professional Service to the Branch AB Ltd. Does AB Ltd. have to deduct TDS on such payment. If yes, under which section and at what rate?


Happy Diwali..!!

Regards,
Devendra
Profile Image

CA Shailesh Kumar Bhagat

Profile Image

CA Shailesh Kumar Bhagat (Expert)
09 November 2010 No TDs will not be applicable. Since income is not accruing in india.
Profile Image

Azmathullah Khan

Profile Image

Azmathullah Khan (Expert)
09 November 2010 section 195(h) or 195(i) apply, please refer the section 195.

The TDS rate is 30% plus EDCess.
Profile Image

CA. Anuj Gupta

Profile Image

CA. Anuj Gupta (Expert)
20 December 2010 Here kindly check the exact nature of activity provided by foreign vendor AND the ultimate use of that services by the branch to earn any income outside India.
I feel that you should carefully read provisions of sec. 9(i)(vii) of income Tax Act for the same.

9810106211
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details