A Foreign Company(USA) wants to hire an employee in India (without being registered in India or having an office here).
Are they liable to deduct TDS and register with IT dept. for PAN/TAN ?
The hired person will be Indian National rendering services in India.
Similarly, what will be their TDS liability in case hiring an individual consultant ?
As per Circular No. 726, dated 18-10-1995, payments to lawyers, solicitors and chartered accountants are not liable to tax deduction by a foreign company if the said company does not have a Permanent Establishment in India, nor has an agent in India. Such an exception has not been provided in case of other payments, which implies that the same are subject to tax deduction.
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