Should TDS be deducted on professional fees paid to Non resident, who has provided services abroad and the payment is made from india in foreign currency? The Services are utilised in India...
I am of the opinion that TDS need not be deducted since the payment made to such non resident is not chargeable to tax in india, because the Services are provided outside.
Please note that Tax Deduction is not dependent upon situs of provision of services after amendment by finance act 2010 which was brought to nullify the supreme court judgement in the case of Ishikawajima Harima.
Therefore considering the facts provided by you, TDS will be deducted at the rate of 25.75% or u can take treaty benefit.
Trust your query is solved. For any other clarification, feel free to contact me at carahulsrivastava@gmail.com
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