TDS on Foreign Coultant

Sir

We have a Private Ltd Company having business of 1 Year MBA & Corporate Training

I have a problems while dealing with Forein Faculty.

Please Guide me on Following Issues.

A)     Payment to Forein Faculty don’t have Bank A/c In India

1)      Faculty don’t have a PAN Card

2)      Faculty gives a self declaration that he has not staying in India for more than 60 Days.

 

B)      Payment to Forein Faculty having  Bank A/c In India (NRI Person)

1)      Faculty don’t have a PAN Card

2)      Faculty gives a self declaration that he has not staying in India for more than 60 Days.

Please Reply it Urgently.

Replies (2)

 

First see the agreement of DTAA with that country and deduct tds u/s 195. @ 20 % since party does not have PAN.

If the foreign teachers are not present in India for more than 60 days (or the no. of days provided in the Treaty of country to which they belong )then you need not deduct any TDS, however kindly take certain precautions in that:-

  1. Copy of their passport so that their stay in India can be ascertained.
  2. Copy of return filed in foreign country which establishes the tax residency of a foreigner.

Anuj

0-9810106211

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