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Tds on fees payable to a resident in outside india

TDS 545 views 4 replies

Dear Sir

Recently we got a problem we got a work Outside india for that we appointed an Engineer who is working in abroad and for that he opens a bank account in abroad but we received the amount from Our Customer in EEFC Account in USD

For that is TDS is Deducible for that consultancy fees payable to Our Engineer ?

The Consulatancy amount payable to Our Engineer is Taxable in His Hands in India ?

He also Undertook other contracts and he is residing in India is less than 60 days in a Year

Can you explain about the  Income tax consequences

Replies (4)

Refer sec 195 -tds is applicable.

Originally posted by : TusharSampatM.Com CA,CS-FINAL

Refer sec 195 -tds is applicable.


My Doubt is Work is Performed Outside India for that amount is also received to us is from Outside India into OUR EEFC Account but we are making to the Non Resident in USD that bank account is maintained in Outside india

Originally posted by : Madhu




Originally posted by : TusharSampatM.Com CA,CS-FINAL






Refer sec 195 -tds is applicable.







My Doubt is Work is Performed Outside India for that amount is also received to us is from Outside India into OUR EEFC Account but we are making to the Non Resident in USD that bank account is maintained in Outside india

bt such amount is taken into account while calclating taxable income in india den sec195 will be applicableyes

Refer relevant DTAA's article on 'independent personal services'. Such services of the NR engineer may be fully exempted subject to his stay in India & having a fixed base in India.


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