TDS u/s 195 on reparis services rendered outside India

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nitin.surve (Querist)

17 October 2008 Please let me know whether TDS u/s 195 on reparis services rendered outside India is deductible.

Machine parts were sent outside India to supplier who had repaired the parts & charged for repairing services rendered outside India.

Pls clarify the applicability.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

17 October 2008 Yes.195 attracts.Also check DTAA,if any,with that country.

Guest

Guest (Expert)

18 October 2008 Dear Nitin I've different opinion about it. If you are sending the parts outside india and the foreign company reparing it at outside india. so as per my opinion the service is rendered wholly outside india and if the payment is also made them outside india then it is not taxable in india. If you read the section 9 and section 5 then u can find the correct answer and as per recent decision of supreme court "ishikawaja-Harmia heavy industrie ltd. " the court gave a decision that the service must be rendered in india and must be utlized in india. so if it is not taxable in india then there is no need to study the DTAA.
I am not neglecting the opinion of other experts but it is my opinion

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