Tds u/s 195

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This query is : Resolved

Nagesh Karia (Querist)

02 September 2014 our Client is going to pay some professional fees to foreign co. But contention of the company that he is US base Non- profit organisation and its all income is not taxable in US. so it will not be able to take credit of TDS deduct by our client. but our client if not paid TDS then that expense will be disallowed to him under IT act.

So, Us company want full amount without any TDS deduction. whether it is possible.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

02 September 2014 not possible as income tax of india is applicable u/s195 u need to deduct at any cost n situation

Nagesh Karia

Nagesh Karia (Querist)

02 September 2014 if US company raised new bill including TDS then whether it will be valid.

i.e Payment made to US co. Rs. 100
TDS rate 10%

if TDS deducted then net payment to US co. 90

so if it raise new bill of Rs. 111 instead of Rs.100
and TDS deducted @10% then it comes to 11

so net payment payment will be 100 only then both situation is taken care.
can it be done

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

03 September 2014 see the provision is quiet clear whatever is the gross amoun i.e 100 or 110 u need to charge tds on gross amount u/s 195

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