Payment to Foreign Lawyer

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chinnu

Charterred Accountant

25 Points Joined July 2008

A parent a company (a company registered in Canada) obtaines the services of a Lawyer based in UK on a loan transaction (ECB) entered in India with a Foreign Branch of an Indian Bank. However the payment for the services is to be made by the Indian Company. Request comments on the applicability of TDS provisions

Replies (1)

ayyappa

CA Final

81 Points Joined January 2009

As per sec. 195, Payment of other sums to the Non-resident-->any other income -->if receipient is a non-resident and non corporate assesse and aggregate payment does not exceed 10 lakhs, then TDS to be deducted @ 30.9% , otherwise 33.99%.