Tds u/s 195-foriegn remittance

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2015 An NGO received a bill from foreign company regarding job package at devnetjobs.org for 320$.....will it be liable for deduction of TDS.....if yes at what rate ?

B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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19 June 2015 Yes it will be as per Chapter XVIIB and if they don't have PAN 20% or rate whichever is higher. Also ensure Form 15CA and 15CB is also filed

CA Hardik Bunha

CA Hardik Bunha (Expert)
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19 June 2015 you have to deduct tds@1% u/s 195.

it is irrespective weather PAN available or not.

for filling form 15CA PAN of remitee is not required.

srinivasan

srinivasan (Expert)
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19 June 2015 I could not understand the basis for the deduction of withholding tax @ 1% u/s 195 as advised by Mr. Hardik Bunha.

All the payments made to non-residents does not call far withholding tax. It is difficult to conclude the withholding tax implication with the given information. you need to brief the service provided in short by the non-resident to the NGO organization in India to get a definitive answer

CA Hardik Bunha

CA Hardik Bunha (Expert)
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19 June 2015 Mr. srinivasan read section 195 of IT act 1961 very well.