Master in Accounts & high court Advocate
9610 Points
Posted on 28 August 2024
TDS (Tax Deducted at Source) is a crucial aspect of Indian taxation. For your query: - Service charges in USD: Since the service charges are in USD, it's considered an international transaction. - TDS applicability: Yes, TDS is applicable under Section 195 of the Income-tax Act, 1961. - Section 195: This section deals with TDS on payments to non-residents, including foreign companies. - Rate of TDS: The TDS rate would be 10% (plus applicable surcharge and cess) under Section 195. - No TDS under Section 194: Section 194 deals with TDS on fees for professional or technical services. Since the service charges are in USD and related to customs documentation and other services, Section 194 won't apply. Please note that you should also consider other regulatory requirements, such as obtaining a Permanent Account Number (PAN) from the