TDS ON NRI ON ACCOUNT GDR CONSULTANCY
This query is : Resolved
31 March 2011
Are we suppossed to deduct TDS on payment made to foreign vendor (NRI, no PE in India) on account of GDR CONSUNTANCY"
02 April 2011
There are 3 types of payments involved in GDR Consultancy:-
1.Underwriting Services- Not taxable if no PE.
2.Lead Managers Commission- Covered u/s 9(1)(vii),however there may be some relief in the DTAA.
3.Selling Commission- Should not be taxable if no PE.
However these observations are based on case law of Raymond Ltd. (Mumbai ITAT). The real situation can be different and the department shall always like to tax the whole payment in lieu of amendment in sec 9(2).My suggestion shall be to deduct TDS on the whole amount.
Anuj
0-9810106211
1.Underwriting Services- Not taxable if no PE.
2.Lead Managers Commission- Covered u/s 9(1)(vii),however there may be some relief in the DTAA.
3.Selling Commission- Should not be taxable if no PE.
However these observations are based on case law of Raymond Ltd. (Mumbai ITAT). The real situation can be different and the department shall always like to tax the whole payment in lieu of amendment in sec 9(2).My suggestion shall be to deduct TDS on the whole amount.
Anuj
0-9810106211
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