TDS in case of payment in Foreign Currency

TDS / TCS 1529 views 1 replies

Hi Friends,

 

i have a question in relation to the provisions of Income Tax Act 1961. Please give me the solution of the problem.

An educational institute has purchased a computer software from a company registered at England & Wales. Payment is to be made in US $ as per the agreement. At the time of payment of US $ 10,000/- as part payment, whether the TDS is required to be deducted by the institute or not. The amount given above is gross and the institute is not bearing the liability of paying tax liable on this payment.

Whether a Chartered Accountant can issue a certificate authorising the institute to pay the sum without the deduction of tax ?

Please inform me the relevant section or rule of the income tax law.

 

Thanks in advance.

Replies (1)

Yes u/s 195. In case you have any doubt regarding the amount on which TDS is to be made, you may file an application with the officer handling non-resident taxation who will pass an order determining the TDS to be made. Alternatively, if the recipient feels that the TDS is more he may file an application with his Assessing officer for non-deduction.

 

refer :-  income tax india FAQ's


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