Tds on professional fees payable to foreigner

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Alen Barboza (Querist)
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22 April 2013 Applicability of TDS on professional fees payable having Indian PAN who is in India since 14-02-2013 staying in rental apartment in Mumbai since then.

He will be providing his services in India as an cinematagrapher. He is from JAPAN

Kindly inform me, under which section should i deducted tax from fees paid to him.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 April 2013 TDS to be deducted u/s 194J @10%.

Threshold limit Rs 30000/- p.a.

sudarshan

sudarshan (Expert)
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23 April 2013 194J is not applicable to NR. it should be deducted us 195

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 April 2013 I think his Residential Status will come to Resident but not Ordinarily Resident. So 194J will be applicable. This also depends on the date of payment and deduction of TDS.

Alen Barboza

Alen Barboza (Querist)
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23 April 2013 The payment made to him is in April 2013, and most probably his status would be resident in the current Year 2013-14, as he will be staying for more than 183 days in a year.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 April 2013 Yes you are correct and therefore section 194J will apply. Only point is that as on the date of deduction he is Non Resident.

Problem may arise if he leaves India as Non Resident. If amount involved is huge you will be advised to play safe and deduct TDS u/s 195 otherwise you may go ahead and deduct TDS u/s 194J. Its my view. View of other experts may also be taken.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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22 May 2013 In my view till the date the foreign citizen doesn't cross 183 days in current year TDS @ 25.75% (if the amount paid is less than Rs. 1 crore) should be deducted.

Anuj
femaquery@gmail.com

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2013 It depends on the nature of services rendered and place where the services have been rendered. If it is in India then the income is taxable in India and TDS applicable to the specific service shall be applicable and you have to deduct the tax accordingly.

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