An Indian Company paying to foreign doctor(Germany)(Eurofins) for organic,pesticides check for tea sample test,these professional fees amouting to 150 Euro(i.e less than Rs 10000) .According to me TDS not liable to be deducted nor form 15CB applicable but bank are demanding Form 15CA ,which also is not applicable according to me .
When we go to income tax site for filing 15CA it does not show Assesment Year 15-16
What can I do ,please provide valuable advise.
Dear Sir
You are require to file form 15CA with the bank for remittance. Your remitance against technical services is chargible to tax in india.
As per section 195 of income tax 1961 :- Person is require to deduct TDS on payment made against Fee for technical services at the rate specified in law or applicable DTAA.
As per DTAA between India and Germeny "TDS is to be deduct at the rate of 10% on payment made for royalty or fee for technical services".
Note :- Section 195 don't provide basic exemption limit (i.e 30000) for non deduction of TDS.
The person has not provided servie in india , the tea sample has been sent to germany ,the service where conducted in germany,neither the person has any permanent establishment in india nor applicability of section 9 .Then how the applicability of tds is arised.The income which has been arised in hands of doctor & his company is not taxable in india then how to apply tds,nor the indian company has any other business outside india
Dear Sir
In Response to your PM :-
As you mentioned above An Indian company paying to foreing doctors :- Since an Indian company is paying technical fee to a NRI " Source of Income is situated in India".
In simple Word a NRI earning Income from India by providing Technical service to Indian Nation.
VIKAS VERMA & CO
New Delhi
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