Associate Finance
709 Points
Joined January 2009
hi jaya,
one always need to look towards the issue of income and services rendered,in the above example the comapny has made payment to a foreign company,so the issue is whether the income is accrued or arised in india,if thts the case then TDS must be deducted,however if the company havent received any money in india,and the services are provided outside india so one cannot deduct tax,kindly go towards the relevant sections namely section 5(2) and section 9 of income tax act,in view of above sections,if the payment is received in india,one needs to deduct tax
regards
sripal jain