Tds on salary type payments made on behalf of 3rd party

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This query is : Resolved

Guest

Guest (Querist)

07 November 2013 We are group of 8 part time freelancers based in Delhi/NCR. From last 1 yr we are working exclusively for one American company in the digital content domain.

Initially, they paid us by Paypal but we requested that our payments be made to our bank accounts instead. The American company is planning to send our payment to a 3rd party Indian company (with whom they have business relationship) and this 3rd party will remit to us.

Question is, can the 3rd party start deducting tax at source? They are saying they will have to but we are not working for this company, they are only getting money from our American employers to send to us. Will we have to face TDS?

CA Pratik Shahnand

CA Pratik Shahnand (Expert)

08 November 2013 For professional if the value of transaction crosses Rs 30,000 TDS will have to be deduted @ 10 %. Although you are not working with the Indian Company but since the transaction is routed through them, they will have to comply the TDS provisions.

Message likes : 1 times

Guest

Guest (Querist)

08 November 2013 thank you Pratik

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