Dear Sir,
We are management company , we received one bill from our consultant based on London ( Not NRI) , the bill is in GBP , now I want to know the following :-
1. Should I deduct TDS on his bill ( as he is foreigner and obhiously he has no PAN ) if yes should I deduct @ 20%.
2. What will be effect of Service Tax , should we pay Service Tax on his behalf and will take Input credit on the same amount ( under reverse charge mechanism ).
Waiting an early reply.
Regards
Jayanta
Very very thanks madam for updating me.
The consultant is a British so he has no PAN then I have to deduct @ 20% ? Is it correct ?
Awaiting your reply
It is actually @ rates in force or @ 20%, whichever is higher, in case of no pan.
Rates in force: https://www.incometaxindia.gov.in/Charts%20%20Tables/TDS%20Rates.htm
(for royalty it is recently amended to @ 10% instead of 25%).
If the rates in force is more than 20%, then such rate is only applicable.
Surcharge (if applicable) + EC + SHEC extra
Thanks mam once again
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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