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Tds on payment to non-resident

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Querist : Anonymous

Querist : Anonymous (Querist)

15 November 2011 Hi, my company have purchase machine from Italy & that foreign company now coming to India for providing training on how to use machine. Should i have to deduct tax on payment made to trainers? & if yes then under which section and what rate. also tell me the procedure,if any? Hoping to hear from u soon.

CA Chitresh Gupta

CA Chitresh Gupta (Expert)

15 November 2011 Yes, the payment to foreign company for providing training may be liable to withholding tax in India.

For the purpose of accessing the actual tax liability, you need to go through the section 195 read with the DTAA with the relevent country.

Also check section 9 of the Income Tax Act

Regards

CA. Chitresh Gupta

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2011 Thanks but What about service tax?

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