Is it necessary to deduct TDS on payment made for Consultancy Services OUTSIDE INDIA?
Also, let me know clause which deals with Consultancy Services-Australia.
Tanay Choksi (Student) (112 Points)
23 July 2010Is it necessary to deduct TDS on payment made for Consultancy Services OUTSIDE INDIA?
Also, let me know clause which deals with Consultancy Services-Australia.
Harpreet
(* * * * * *)
(1670 Points)
Replied 23 July 2010
yes tds applicable as per my knowledge. and u need to read dtaa also in this case.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 23 July 2010
Dear Tanay,
TDS is applicable on consultancy services provided outside India. You need to refer to article 12 of the DTAA between Australia and India.
Compare the Income Tax Act rate with the DTAA rate. Deduct TDS at the rate which is beneficial to the asessee.
Regards,
Fatema.
CAclubindia
