TDS on Foreign Payments

Save Share

This query is : Resolved

Sachin Mohite (Querist)
Follow

26 April 2010 Sir
One of our client, being Individual (not having tax audit in preceeding year) has to remitt Rs.80,000 (equivalent to USD) to USA towards printing charges. Whether he has to make TDS on the same?.
The client is not having TAN as he is not liable to make TDS on domestic paymetns. Also the creditor (party of USA) is not having PAN.
In this connection whether Tax to be deducted on the above mentioned payment?. If yes, at what rate?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

26 April 2010 IF THE INDIVIDUAL IS NOT LIABLE FOR TAX AUDIT HE NEED NOT DEDUCT TDS.

Sachin Mohite

Sachin Mohite (Querist)
Follow

26 April 2010 Sir
Section 195 mentions "'Any Person' responsible for making payment to non-resident.....

Whether Individuals not laible for Tax Audit in preceeding year, will be covered under word 'Any Person' as per Section 195.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

26 April 2010 IN MY OPINION TDS IS NOT REQUIRED TO BE DEDCTED AS HE NEED NOT HAVE A TAN AND DEDUCT TDS. VIEWS OF OTHER EXPERTS SOLICITED.

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