Indian importer has placed a service PO on USA Co for commissioning. Besides technician fees based on per diem rate, they will charge a lumpsum amount towards 14 days quarantine at Hotel ..Covid guideline. Not at actual. How to apply withholding taxation on two different line items,,one is defined on days of work basis and another lumpsum without any service..plus if quarantine bill at actual, will it be different tax rate?
Please guide.
Jayanta
Kolkata
2.9.21
Technician fee based on per diem rate and charges (either fixed or actual) for covid quarantine will all subject to WHT as fee for technical services u/s 195. the mode and manner of computation of payment is not relevant so long as it is incurred for availing technical services in this case.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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