Tds from foreign company

TDS / TCS 810 views 5 replies

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


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