Tds on payment to non resident
This query is : Resolved
JAYESH R SHAH
(Querist)
30 January 2013
The facts of the case are as mentioned below.
1. Our company registered in India R&D Group wil be buying containers from companies in Dubai, USA, UK etc.
2. The payment to our suppliers in Dubai, USA and UK will happen in USD from our Account in India.
3. We will the sell these containes to exporters in India who will be exporting goods in these containers. However as we will do the billing in India and we will charge them 12.5% VAT our sales price.
4. When we file the sales tax returns we will then pass on the 12.5% VAT on our sales value to Sales tax authorities.
Our querry is that whether or not the company is required to deduct tax on payment to suppliers.
1. Our company registered in India R&D Group wil be buying containers from companies in Dubai, USA, UK etc.
2. The payment to our suppliers in Dubai, USA and UK will happen in USD from our Account in India.
3. We will the sell these containes to exporters in India who will be exporting goods in these containers. However as we will do the billing in India and we will charge them 12.5% VAT our sales price.
4. When we file the sales tax returns we will then pass on the 12.5% VAT on our sales value to Sales tax authorities.
Our querry is that whether or not the company is required to deduct tax on payment to suppliers.
31 January 2013
Hi,
If you are taking about payment to UK,USA and Dubai suppliers, then as per my opinion, becoz you have purchased the material from them, you need not to deduct any tds under Income tax provision.
If you are taking about payment to UK,USA and Dubai suppliers, then as per my opinion, becoz you have purchased the material from them, you need not to deduct any tds under Income tax provision.
Arihanth Jain
(Expert)
18 February 2013
Business Income not liable to TDSif NR has no attributable PE in India.
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