An Indian Company wishes to raise loan in Abu Dabhi with the help of a professional. In this regard the Indian Company will be paying the professional charges to the professional. What are the Income Tax and Service Tax provisions in this regard?
Menu
Income Tax and Service Tax provisions
Replies (3)
Income Tax - The DTAA provisions will have to be considered, if any. TDS should be deducted as per the DTAA or as per sec 194. whichever is benefitial to the assessee.
For Service Tax - The company will have to gross up the fees and remit the service tac on it to the dept
For Income Tax: Deduct tax as per section 195 as withholding tax
For Service Tax: This is Import of Service, hence, you will have to pay Service Tax @ 10.3% (now 12.36%)
Regards
Prateek
Trust the professional in question is in Abu Dabhi... Then the replies above will be correct.
Recent Topics :
- TDS return filing
- Need formats of FS as per Co act 2013 in soft copy
- Remittance to italy
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
Related Topics :
CAclubindia
