Tds on sub contract of installation of machine in sri lanka
17 February 2020
we are an indian company which provide installation services of machines in various industries. we were recently awarded a contract of installation of machines in Sri lanka by an MNC 'C inc'. We sub contracted the above installation contract to a sri lankan company. the sri lankan company (say it S) will be paid by us in us dollars through our indian bank account.
is the amount paid by us to srilankan company S liable to tax deduction in india? as per my opinion, this service is not a technical service by virtue of definition of technical services as assembly is not technical service.
further are we liable to TDS on this payment? sri lankan company S does not have any PE in india.
03 March 2020
In the above situation TDS is not required to be deducted.