Please help me if tds on foreign remittance is required

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Hi All,

One of my client is running business as a research company for various new drugs. They have signed an agreement with a FOREIGN COMPANY. The FOREIGN COMPANY acts as a third party and introduces other clients for business. My client is paying RETAINERSHIP FEES to such FOREIGN COMPANY for the business he has been providing. Now I am unable to decide if Tax needs to be deducted on such payment to the FOREIGN COMPANY. The amount of remittance is $2,000 per month.

 

Thanks,

Harsha

Replies (4)

Dear Harsh, 

Under sec 195 TDS should be deducted as payment is made to Non Resident.

Regards

Hi,

Section 195 covers this case. tax needs to be deducted as per rates in force. Also need to check DTAA with that country for any exemptions.

For any further query PM or mail me.

AJH & CO.

anubhavjain @ ajhco.in

Do we have to deduct tax even if the foreign company has no PE in India and also if the incidence of income doesn't arise in India.

 

Thanks,

Harsha

Yes, tds should be deducted. No need of PE.

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