Withholding tax on Legal Services

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This discussion clarifies withholding tax obligations for an Indian company engaging a legal consultant for services rendered entirely within Sri Lanka. Initially, it was suggested no withholding tax applies as services are provided outside India. However, further clarification indicated that legal services can be considered technical services, potentially triggering a 10% withholding tax deduction.

swasti

swasti (Querist)

08 February 2020 An Indian company has hired a legal consultant to look after its case in Sri Lanka. The consultant is providing the services in Sri Lanks itself. Would there be any withholding tax to be deducted? Please advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 February 2020 Service provided by nonresdent outside India no witholding tax applicable in such a case.

swasti

swasti (Querist)

10 February 2020 Thanks a lot Sir. But as per the link provided considers legal service as technical service. Please guide in such case.
https://taxguru.in/income-tax/tds-legal-service-received-india.html

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2020 Agree with you in such a case 10% withholding tax has to be deducted.

swasti

swasti (Querist)

10 February 2020 Thanks a lot Sir for the expert advice and guidance always.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2020 Welcome...........
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