TDS on Remittance in Dubai for services received in Dubai for a project in Dubai
This query is : Resolved
Quick Summary
12 December 2025
Sir / Madam
We are a LLP registered in India, doing live events & shows in India & abroad. We are taking services for foreign companies for consultation for events to be done in foreign countries.
The service provider is a foreign LLC (Dubai Co), where consultancy service was provided for a project in Dubai & other countries (Excluding India) & the Dubai LLC does not have any PE in India as well.
So do we have to Deduct TDS on the remittance made for such services ?
If TDS is not to be deducted, then what documents are to be compiled to initiate the remittance ?
& If TDS to be deducted, then at what rate and what documents are required for the same. ?
We are a LLP registered in India, doing live events & shows in India & abroad. We are taking services for foreign companies for consultation for events to be done in foreign countries.
The service provider is a foreign LLC (Dubai Co), where consultancy service was provided for a project in Dubai & other countries (Excluding India) & the Dubai LLC does not have any PE in India as well.
So do we have to Deduct TDS on the remittance made for such services ?
If TDS is not to be deducted, then what documents are to be compiled to initiate the remittance ?
& If TDS to be deducted, then at what rate and what documents are required for the same. ?
12 December 2025
No, your Indian LLP is generally not required to deduct TDS on the remittance made to the Dubai LLC under the Indian Income Tax Act, as the income is not considered to accrue or arise in India.
TDS under Section 195 of the Income Tax Act is only mandatory on payments to non-residents if the sum is chargeable to tax in India. Since the consultancy services were rendered and utilized entirely outside India (for projects in Dubai and other countries, excluding India), and the Dubai LLC has no Permanent Establishment (PE) in India, the income earned by the foreign company is not considered taxable in India.
TDS under Section 195 of the Income Tax Act is only mandatory on payments to non-residents if the sum is chargeable to tax in India. Since the consultancy services were rendered and utilized entirely outside India (for projects in Dubai and other countries, excluding India), and the Dubai LLC has no Permanent Establishment (PE) in India, the income earned by the foreign company is not considered taxable in India.
Message likes :
1 times
12 December 2025
For initiating the remittance, you are required to compile and submit specific documents to your bank/Authorized Dealer:
Forms 15CA and 15CB: It is mandatory to file these forms for all foreign remittances, even if no TDS is deducted.
Form 15CA: This is a declaration by you (the remitter) providing details of the payment.
Form 15CB: This is a certificate from a Chartered Accountant (CA) certifying that no TDS is deductible and determining the taxability (which is nil in this case) under the Income Tax Act and applicable DTAA provisions. This is typically required if the aggregate remittance exceeds ₹5 lakh in a financial year.
Supporting Documentation: It is crucial to maintain comprehensive documentation to support your claim of no taxability in India, in case of an audit. This documentation should include:
Agreement/Contract: A copy of the service agreement with the Dubai LLC clearly outlining the scope of work, demonstrating that services are performed and utilized outside India.
Invoices: Invoices from the Dubai LLC for the services rendered.
Proof of Service: Correspondence or other evidence showing that all activities and the source of income were located outside India.
No PE Declaration: A self-declaration from the Dubai LLC confirming that they do not have a Permanent Establishment or business connection in India.
Tax Residency Certificate (TRC): Though not strictly necessary if you are not claiming DTAA benefits (as the income is not taxable anyway), having the TRC from the Dubai tax authority can be beneficial.
Forms 15CA and 15CB: It is mandatory to file these forms for all foreign remittances, even if no TDS is deducted.
Form 15CA: This is a declaration by you (the remitter) providing details of the payment.
Form 15CB: This is a certificate from a Chartered Accountant (CA) certifying that no TDS is deductible and determining the taxability (which is nil in this case) under the Income Tax Act and applicable DTAA provisions. This is typically required if the aggregate remittance exceeds ₹5 lakh in a financial year.
Supporting Documentation: It is crucial to maintain comprehensive documentation to support your claim of no taxability in India, in case of an audit. This documentation should include:
Agreement/Contract: A copy of the service agreement with the Dubai LLC clearly outlining the scope of work, demonstrating that services are performed and utilized outside India.
Invoices: Invoices from the Dubai LLC for the services rendered.
Proof of Service: Correspondence or other evidence showing that all activities and the source of income were located outside India.
No PE Declaration: A self-declaration from the Dubai LLC confirming that they do not have a Permanent Establishment or business connection in India.
Tax Residency Certificate (TRC): Though not strictly necessary if you are not claiming DTAA benefits (as the income is not taxable anyway), having the TRC from the Dubai tax authority can be beneficial.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Reporting of STCG on Property in ITR
- Not able to file ITR
- Building tax payment deduction in rental Income
- Under construction property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
