Tds on payment to nri

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Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2011 We are Indian domestic company engaged a UK based foreign company for some professional services. They will conduct marketing survey for our product in their country. We made mutual agreement for the same. The UK company does not have any PE in india and also they provided their service out side India. In this scenario TDS u/s.195 will be applicable?

Section 5 tells that income does not included when income Accrues or arises to him outside india and received outside india from (a) business controlled out side India, or (b) profession set-up outside india.

Please let me know that the TDS to be deducted or not on the payment made to foreign company?

U S Sharma

U S Sharma (Expert)
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10 August 2011 as the expenses are paid by indian company and are to be claimed in P/L of indian company in india, hence sec 195 applies.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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10 August 2011 TDS shall be needed to be deducted under sec. 9(1)(vii), however the benefit of make available clause can be given to UK entity.

Anuj
+91-9810106211
femaquery@gmail.com

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