TDS On Remittance ?

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Mukesh Kumar (Querist)
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14 March 2009 Hi all
I want to know that if i avail the professional service or any contract in outside india then will we have to deduct TDS ?
I think that no one know about TDS and they demand for full payment.
What should i do ?
I am waiting for your reply.

Thanks in advance
Mukesh Kumar
Accountant
Delhi

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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14 March 2009 you will deduct tds on payment to contract outside India otherwise it is net of tax you will grossing the amount & pay the tax to the govt

Mukesh Kumar

Mukesh Kumar (Querist)
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14 March 2009 Is there no law for not deducting tax as i think that no one knows the TDS in foreign.
They say to remittee full amount

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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14 March 2009
person responsible to a non-corporate non-resident assessee or to a company other than a domestic company, of any interest or any other sum (not being salary) is required to deduct TDS.
income of recipient taxable in india is subject to tax deduction, not the entire payment.

plz refer section 195 for more details.

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CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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14 March 2009 for that u need to explain them the income tax provisions of India.

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Mukesh Kumar

Mukesh Kumar (Querist)
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14 March 2009 Thanks Devanshi for ur suggestion.