TDS ON FOREIGN REMITTANCE

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This query is : Resolved

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This discussion clarifies tax obligations for consultancy work performed abroad for foreign companies. It addresses whether GST applies to invoices for services rendered outside India and if Tax Deducted at Source (TDS) is required when remitting payments to non-resident contractors for work done overseas. The consensus is that neither GST nor TDS is applicable in this specific scenario as the services are provided entirely outside of India.

Green Shipbrokers

Green Shipbrokers (Querist)
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07 August 2020 IS ANY KIND OF TAX APPLICABLE (WHILE RECEIVING FUNDS OR WHILE REMITTING) IN CASE OF ONE SECURES A CONSULTANCY CONTRACT FOR SHIP REPAIRS FROM ONE FOREIGN COMPANY FOR WORK TO BE DONE/SUB-CONTRACTED IN ANOTHER FOREIGN COMPANY.
THE PAYMENT WOULD BE RECEIVED FROM SAY SINGAPORE IN TO INDIA AND MUCH OF IT WILL HAVE TO BE FORWARDED TO CONTRACTORS/CONSULTANTS IN UAE WHERE THE ACTUAL WORK WILL BE DONE.

NONE OF THE FOREIGN COMPANY'S HAVE ANY BRANCH/REPRESENTATION IN INDIA.

1. WILL GST BE APPLICABLE ON INVOICE RAISED TO SINGAPORE COMPANY?
2. WILL TDS HAVE TO BE DEDUCTED ON PAYMENTS BEING REMITTED? HOW MUCH?
ANY OTHER CONSIDERATIONS TO NOTE, IN THIS CASE.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2020 1 GST not applicable as service provided outside India.
2 TDS not applicable as it's a payment to non resident for service rendered outside India.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2020 1 GST not applicable as service provided outside India.
2 TDS not applicable as it's a payment to non resident for service rendered outside India.

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