Tds from foreign company

We are paying professional fees to a Foreign Company after deducting TDS @ higher rate i..e. 20%,  and issuing them Form 16A.

In this reg. can foreign company get benefit if any of Form 16A ?

Also TDS deducting @ 20% is correct or not ( PAN NOT AVAILABLE)

Replies (5)

What u do is 100% correct , they shall take credit of the tds u paid only on the following conditions

 

1)   DTA agreemnt exists between the contries

2)  if  the same income earned by them in othert state .

 

Foreign compnay does not have any branches in India

I think TDS rates for foreign company coming under DTAA are usually under 20%, so you can deduct 20% for PAN number not available.

TDS arises only if the payment is chargeable to tax in India. So if work is done outside India and payment made to person directly outside India is not taxable and no TDS . In this case a certificate from CA in from 15CB and an online form 15CA will be filled.


But if payment is made in India or work has been done in India then it is taxable in India and TDS liability will arise.

agree with mr venket

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details