Mahantesh (Practise ) (82 Points)
14 August 2012Sir,
we have paid rent to non resident. we have taken General assets in foreign country for rent. and utilised the assets in foreign country . We have never brought the assets to india. do we need to deduct TDS. The amount paid is 10,00,000. There is no DTAA with regard to that foreign country.
Regards
CA Shantanu Goyal
(Practicing CA)
(122 Points)
Replied 15 August 2012
In case CIT v. Fertilisers & Chemicals (Travancore) Ltd. [1990] 86 CTR (Ker.) 40 it is being decided that to decide the deductability of TDS it is to be seen whether the service is rendered in India or that income accrue to that non-resident india.
In your case income does not accrue in India. Hence need not to deduct TDS.
Please read the case sepcified above carefully and inspect it considering facts of your case.
CAclubindia
