Is Tds applicable for marketing in a foreign country?

If marketing Individual is working as an employee of company than section 192 is attracted.

If status is other than employee than check residential status of that person .

If person has permanent establishment in India and having PAN no. than 194 C or 194 J attracted.

oterwise section 195 attracted

Originally posted by : D.Hema
	Hello everybody! i've a doubt in tds. Will TDS be attracted if a marketing individual is employed in germany to procure projects for a software development company in India ? If so under which section? shud 15 CA n 15 CB be procured? Kindly reply.Thank you.

Status = NRI or Resident?

Employed by = indian or german or any 3rd country?

if employed then procurement of projects is his duty and he may get incentives alongwith salary, if working for 3rd party then check "compitence with employer"

if the order is not belong to employer then such amount would be accounted to "commission" earned in india. and nothing related to forex would attract. 

Originally posted by : vivek
	If marketing Individual is working as an employee of company than section 192 is attracted. If status is other than employee than check residential status of that person . If person has permanent establishment in India and having PAN no. than 194 C or 194 J attracted. oterwise section 195 attracted

TDS u/s 195 (and not 194J or C)shall be applicable even if the person has a PE in India. Also it is little difficult to digest how an individual can have  PE in India(although techinically the same is possible).

Form 15CA and CB shall be required in the present case if the case is covered u/s 195.

Kindly check the exact termns of agreement between the Indian Company and the foreign person.Any answer can be arrived only after that.

Anuj

0-9810106211

Anuj Sir,

Section 115A says that section 44DA is not included in the rate of tax mentioned therein.

Then what is the tax rate for 44DA

And how does 195 cover 44DA. I mean I have only come accross the rate of tax in 115A. What is the rate of TDS on 115A and 44DA??

Thanks and Regards

The rate for sec 44Da shal be 40% plus surcharge plus cess chargeable on NET BASIS..(receipts - expenditure)

Sec 44DA comes into picture if the foreign party to whom royalty or FTS is paid is having PE in India and such FTS or royalty is effectively connected with such PE.

Anuj

0-9810106211

Thnks,

can u pls tell me section no. where rates for 44DA are mentioned??

Thanks and regards

In the Finance Act