Double Taxation Avoidance Agreement

Dear All,

I'm working for a Int'l Freight Forwarding Co. based at New Delhi. I need to remit some money to our agents based at Taiwan, HongKOng. They have executed some shipments from Taiwan and Hongkong to New Delhi and i need to remit the freight incurred by them.

There is lot of confusion regarding the TDS under DTAA. Some CA say there should be TDS and some say there should not be. I personally feel that since these companies doesn't have offices in India there should not be any kind of TDS.

Please post your comments and guide me.

Thanks

Ritesh Kumar

9810445131

Taurus Logistics

Replies (5)

Dear Mr.Ritesh,

In my opinion, tax should not be deducted in the present case if the agents don't have a business establishment in India. Pls refer Sec 9 of IT Act.

Rgds,Venkat

 

 

 

Dear Mr Ritesh,

First of all I would like to clarify that there is no DTAA betwenn India- Hongkong as of today. Hence you will not have any choice but to follow the Income Tax Act.

If the payment your making is as aganst the freight charges incurred by the Hongkong Co., I dont see there is any income acruing in India. It should form part of the business income of such Hongkong Co.

Such income wil not be liable to withholding tax in India if the Hongkong Co does not have any business connection or fixed place of business in India(refer I T Act).

 

- Arihanth

Dear Mr Ritesh,

First of all I would like to clarify that there is no DTAA betwenn India- Hongkong as of today. Hence you will not have any choice but to follow the Income Tax Act.

If the payment your making is as aganst the freight charges incurred by the Hongkong Co., I dont see there is any income acruing in India. It should form part of the business income of such Hongkong Co.

Such income wil not be liable to withholding tax in India if the Hongkong Co does not have any business connection or fixed place of business in India(refer I T Act).

 

- Arihanth

Dear Experts ,

I have to pay my vendor called Bureau Veritas who have done testing in our company at Gurgaon.

They are based out in Hong Kong.

Please let me know whether TDS is applicable or not. If yes, what is the rate.

Abhijit

Is there is any further development after 30 april 2010, on which govt empowers to do DTAA with hongkong

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