Tds u/s 195

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Shashikant (Querist)
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12 January 2015 my client has participated in exhibition in Hongkong for which he has made payment to canvassing agent who is residing in India and agent is also having a certificate of deduction of tax at lower rate(4.73%). please advice me whether it should be covered under section 195 or 194 C/194 I and rate of tds.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 January 2015 Since he is residing in India 195 is not applicable. TDS to be made u/s 194H at 4.73%. You have to check the services provided to you covered for deduction at lower rate else 10% has to be deducted.

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CA Hemant Bhathad

CA Hemant Bhathad (Expert)
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12 January 2015 Bcoz agent is resident 195 not applicable

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Rupesh Jain

Rupesh Jain (Expert)
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13 January 2015 u/s 195 not applicable.

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Shashikant

Shashikant (Querist)
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14 January 2015 why it should be covered under section 194h?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 January 2015 Who is responsible to deduct tax u/s 194H? Ans. Any person, (other than individual or a Hindu undivided family) who is responsible for paying, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, deduct income-tax thereon.

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Shashikant

Shashikant (Querist)
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14 January 2015 but sir, how could we consider expenses towards exhibition as commission.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 January 2015 You said he is an agent that is why I suggested deduction u/s 194H. If you are paying the exhibition expenses then deduct TDS u/s 194C.

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Shashikant

Shashikant (Querist)
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14 January 2015 my client has taken stall on exhibition in trade fair at Hongkong, now he is going to make payment to Agent of Hongkong's party who is resident in india and also having certificate of lower deduction at the rate of 4.73%. now please advice me under which section tds should be deducted?

Shashikant

Shashikant (Querist)
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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 January 2015 Ask him to prepare two bills one for agents commission in India for which TDS u/s 194H is applicable, if lower deduction applicable for this service deduct it. For the expenses to be incurred for exhibition out side India No TDS applicable as it is payment to non resident for services rendered outside India.

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