Help on TDS Matter

IN YOUR CASE PRIMA FACIE THE FOREIGN COMPANY IS NOT LIABLE FOR ANY TAX IN INDIA THUS AS PER SECTION 195 THERE IS NO LIABILITY TO DEDUCT TDS .SECTION 195 INSTRUCTS TO DEDUCT TAX ON INCOME WHICH IS TAXABLE IN INDIA ONLY.

BUT UNLESS THERE IS NO SPECIFIC EXEMTION TO THIS EFFECT CERTIFICATE FROM AO SHOULD BE OBTAINED BY THE FOREIGN COMPANY BY MAKING AN APPLICATION U/S 195(2).

HOPE I AM CLEAR.

REGARDS,

RITESH KOTHARI

Dear

Thank u. but the fact is that since the income is arise in India the service receiver is liable to deduct tax from the foreign company bill. In that case what will be the process to deduct tax.

Abinash.

If TDS deductible then deductible u/s 195. Also check the rates as per DTAA in respect of the country you are making payment. Also now form 15CA & 15CB is to be filed before making foreign remittance.

Should TDS be deducted on data entry expenses incurred in college if the amount incurred is Rs.5000/- p.m i.e. Rs. 60000/- Annually