Payment to foreign consultant

Dear All,

There is consultant who is a non resident of india and a citizen of U.K to which we are paying and deducting T.D.S under section 195. He send his consultancy bill but the expenses occuer in meetings and travelling are send by him sepretly without any invoice should we tell him to send the total consultancy amount  and expenses in main bill? otherwise we need to deduct TDS on the expenses amount too.

Beacause every transection is done with CA's certificate 15CA and 15CB forms

Please suggest the solution.

Replies (3)

Any amount paid to the consultant is liable to TDS, in this case the consultant not mentioned his reimbursements in the invoice, its wrong if the company (you) fail to deduct the TDS on reimbursements you will liable to pay the TDS along with the penalty.

moreover the Bankers will ask the form 15CA, 15CB & fema declarations along with the Invoice from the consultant. at that time the actual remittance amount is lessthan the Invoice value and bankers may refuse your payment

Hi,

Wanted to know what will be the rate of TDS on Rent & Interest ( on loan ) for NRI with following details -

- Having PAN in India

- Earning out of India

- Paying Taxes as per laws of the country where that person resides.

- Having Real Estate in India

- Filing ITR outside India.

 

Please help me with the same.

Regards.

Hetal,

 

As per FEMA ,Companies are not prmitted to obtain loan from NRI's .

Rate of TDS for Rent shall be 30.9% whereas for interest for money received in in foreign exchange shall be 20.6%.(If the amount is less than 1 crore).

 

Anuj

+91-9810106211

femaquery @ gmail.com

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