Payment to non resident

TDS / TCS 699 views 3 replies

Friends,

Channel Subscripttion Fees is  paid to a foriegn company to maka a channel available in that country.  Is this payment liablble  to tds, if so, is it corect that tds must be deducted under section 195? 

In that case how to  give the particulars of tax deduction? Form 16A will not be aqccepted in that country. The reciepient can neither claim refund nor credit for the tax deducted.......wha is to be done in this case?

Replies (3)

YES,  TDS IS REQUIRED TO BE DEDUCTED UNDER SECTION,IF AMOUNT PAID IS TAXABLE IN INDIA AND FEES PAID TO THE FOREIGN CO FOR CHANNEL IN INDIA IS INCOME DEEMED TO BE ACCRUE & ARISE IN INDIA...SO I THINK TDS REQUIRED TO BE DEDUCTED

ritesh u can filed application u/s 154 for rectification of return

Originally posted by : Sasidhar Aruljothi

Friends,

Channel Subscriptttttion Fees is  paid to a foriegn company to maka a channel available in that country.  Is this payment liablble  to tds, if so, is it corect that tds must be deducted under section 195? 

In that case how to  give the particulars of tax deduction? Form 16A will not be aqccepted in that country. The reciepient can neither claim refund nor credit for the tax deducted.......wha is to be done in this case?

 

Dear Sasidhar,

I could make out from your post ,that an Indian Company is making payment to a Compnay located outside India for subscripttion fees for channel . In my view that Income is not taxable in India.

 

Form 16A shall not be required in the present case. Even if otherwise form 16A is acceptable in foreign country and the foreign country's Income Tax Office shall give credit for TDS deducted in India. The receipient can't claim refund in home country but can definitely adjust the tax deducted in India against the tax liability in its home country.

 

Anuj

+91-9810106211

femaquery @ gmail.com


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