30 December 2014
My Client is a Domestic Co. & he has business of supply Manpower outside india. he has a one Year contract with foreign co. for supply of manpower & he has Supplied a Non Resident (Individual) to that Co. but as per Contract my client is to Pay Payment to Non Resident, he would charge the same amount plus his benfit from the client(Foreign Co). My Question is the Amount Which is Paid by my Client to that Non resident is liable to TDS @1% under Contract???
31 December 2014
It is immaterial where the contract is entered into. The payment is made to non resident for services rendered outside India hence no TDS will be applicable.