Tds on fees payable to a resident in outside india

TDS / TCS 570 views 4 replies

Madhu

student

65 Points Posted on 15 December 2012

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)

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Posted on 15 December 2012

Refer sec 195 -tds is applicable.

Madhu

student

65 Points Posted on 15 December 2012

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

CS,CA F,Numrologi TusharSampat

CS CA F Numerologist Astrologer Graph

85935 Points Posted on 15 December 2012

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 applicable

Arihanth Jain

Chartered Accountant

1226 Points Posted on 16 December 2012

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.