Our company is appointing Fisheries Expert from Bangladesh as an Advisor for project related work. The Advisor will be paid in US dollar. Would you please advise us on taxation related to his payment. We have agreed to gross up his taxation in India due to loss of income from double taxation (in India and Bangladesh). Will there be incurrence of "Withholding Tax? What is the rate of Withholding tax in such situation?
Secondly, we will be funding the setting up of low cost sanitary napkin manufacturing unit by a Self Help Group (SHG). SHG are village people who are going to manually prepare the low cost sanitary napkin. What would be tax implications in manufacturing and sale of napkins by the SHG? Is VAT and Excise duty applicable? The SHG is located at Gujarat..
Please provide solution to these queries...
CAclubindia
