My client a sole proprietor exported one consignment to SRI LANKA. Due to some reasons, the IMPORTER did not pay & clear the consignment at COLOMBO(SRI LANKA). My client engaged services of LOCAL C&F AGENTS (COLOMBO) for C&F work to send the consignment to another country (NOT BACK TO INDIA).
THE CHARGES TO NON RESIDENT C&F AGENTS comes to US $ 7,500/- (Indian Rs. 4,00,000/-).
THE C&F AGENTS IS LOCAL (COLOMBO). SERVICES ARE RENDERED AT COLOMBO(SRI LANKA).
PAYMENT IS MADE BY REMITTING THE CHARGES THROUGH BANK DD (From India BANK).
THE C&F AGENT DOES NOT HAVE ANY ESTABLISHMENT IN INDIA.
MY QUERRY IS:
WHETHER ANY TDS has to be effected?
IF SO, under what Section? and at What Rate.
PLEASE NOTE THERE IS DTAA WITH SRI LANKA.
Please give your advice.
Thanks in Advance.
CAclubindia
