Tds on import of service

11291 views 2 replies

RP

freelancer

21 Points Posted on 23 February 2018

Greetings,

I am Working online, so if i buy any kind of service from out side of india (USA, or other country) then do i have to pay TDS on amount i send to my service provider?

indetail

i own a website and i have a guy working for me from usa so on montly bases i will have to send him payments depends on how much he works,

so on this case do i have to pay TDS? if yes how much..

Replies (2)

Langesh Siva

Chief financial Officer- CFO

164 Points Posted on 23 February 2018

Hi,

If you are a company and foriegn company registered in india you can deduct the TDS and pay and they are registered or not registered in India also you have to file form 15CB with Auditor and form 15CA with company

Mahesh Bingi

Tax return preparer

462 Points Posted on 27 February 2018

Hi, You are resident and service provider is a non-resident right?

A. As per IT Act you have to deduct TDS u/s 195 (FEES FOR TECHNICAL SERVICES/ FEES FOR INCLUDED SERVICES)

1. 10.3% if payment is morethan 50 lakh or less

2. 11.33% if morethan 50 lakh but not morethan 1 crore

3. 11.845% morethan 1 crore.

If PAN not available need his/her 1.Email id, 2.Contact number, 3.Address & 4.TIN/Unique Identification number if both are not available you have to deduct 20%

B. As per DTAA you have to deduct TDS u/s 195 (FEES FOR TECHNICAL SERVICES/ FEES FOR INCLUDED SERVICES)

1. 10%

2. If PAN not available need his/her 1.Email id, 2.Contact number, 3.Address & 4.TIN/Unique Identification number if both are not available you have to deduct 30%.

Before this you have to take Form 15CB (This captures all deduction details) from CA and upload 15CA in your login (efilingincometaxindia).