Foreign remittance whether tax to be deducted at source ?

1007 views 2 replies

Hello everyone,

one of my client has entered into agreement with a company in turkey providing certification services. as per agreement my client has to pay to the foreign co. 150$ per certification. He has done 3 certification in the year 12-13.

now he want to make pmt of 450$ to the turkish co. he has come to me for form 15CB certificate. My

Question: whether my client needs to deduct tax at source? if yes at what rate?

 

Replies (2)
Yes Abhishek, Tax has to be deducted u/s 195 for this foreign remittance. Your client has to obtain PAN for this Non-Resident client else tax is to be deducted @ 20% u/s 206AA. I suggest you to go through CBDT circular No- 4/2009 dated 29/6/2009. This circular was issued regarding procedure for foreign remittance. I am sure this circular will clear all your doubts regarding foreign remittance. Hope this will help you. Regards.

your foreign client will not be pleased with 20% less fees unless you have told him about this in advance.

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