Tds

TDS 350 views 2 replies

If we provide service of booking Hotel out of India then should we deduct TDS while doing payment??

Replies (2)

Please refer the Provisions of Sec.9 and if the income is liable to be taxed in india, then TDS is to be deducted

In your case,hotel(Property) is outside india i.e source of income is outside india,so it is foreign income.For a non-resident,foreign income is not taxable in india.So need to deduct T.D.S.(Please refer whether there is any DTAA between india and host country and in that case no need to deduct T.D.S.). As you act as mediator,you will receive commission and it is foreign income but as your assessee is resident,it is taxable in assessee hands.but foreign company need not to deduct T.D.S on commission paid to your assessee.Reply pleased if any mistake found in my assertions.


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