Preeti (Consulting) (159 Points)
22 August 2011HI,
An indian company needs to make payment to a Non Resident as a commission for the hotel bookings arranged for the indian company hotels based in INdia.
Will tds would be levied ?
Issue is as the asset is based in India will it would be assumed income has accrued in India?
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 22 August 2011
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 22 August 2011
Hi Preeti
TDS should be deducted u/s 195.
The income will fall under the purview of section 9 and will be treated as indian income.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 08 September 2011
| Originally posted by : Preeti | ||
 |
HI, An indian company needs to make payment to a Non Resident as a commission for the hotel bookings arranged for the indian company hotels based in INdia. Will tds would be levied ? Issue is as the asset is based in India will it would be assumed income has accrued in India? |
 |
TDS should not be deducted in the present situation, but the same is subject to relavent Treaty. If there is no treaty then situation might change .
Mere having an asset in india shall not make the income accrued in India. Here the services were renederd outside India and therefore the income shall not be accrued in india.
Anuj
+91-9810106211
femaquery @ gmail.com
vinita
(CA Practice )
(35 Points)
Replied 21 September 2011
Hello Anuj,
Which clause in the treaty would need to be seen? Can you please explain?
Since the hotel room is an asset or source of income in India - will it not come under the purview of Section 9(1)(i)?
Also is there any caselaws to support the non-deduction of tax at source?
Kindly advise asap.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 06 October 2011
Hi Vinita,
it feels great to have such thought provoking questions, which lift the overall standard of CCI to great heights.
Yes hotel room rents shall constitute an asset or source of income in India - and it will come under the purview of Section 9(1)(i), but the Treaty shall come to our rescue .
Kindly read Article 7 read with Article 5 of the relavent treaty, the situation shall be clear by itself.
Anuj
+91-9810106211
femaquery @ gmail.com
vinita
(CA Practice )
(35 Points)
Replied 07 October 2011
Many thanks Anuj!
Appreciate the compliment and have noted your view.
Regards,
Prashanth
(CA Article Student)
(25 Points)
Replied 01 June 2016
| Originally posted by : CA. Anuj Gupta | ||
|
Hi Vinita, it feels great to have such thought provoking questions, which lift the overall standard of CCI to great heights. Yes hotel room rents shall constitute an asset or source of income in India - and it will come under the purview of Section 9(1)(i), but the Treaty shall come to our rescue . Kindly read Article 7 read with Article 5 of the relavent treaty, the situation shall be clear by itself. Anuj +91-9810106211 femaquery @ gmail.com |
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Hi CA Anuj Sir
1.So as per the Article 7, only if the Foreign Body(for whom the payment is made) has presence in india, it will be considered as income is accrued in india right??
2. as per new rule of 37BB of Income Tax Act, whether 15CA and CB has to be submitted if the payments for imports exceed Rs. 5,00,000? please clarify
CAclubindia
