TDS on legal services ?

Treatment of TDS is same as for Professionals u/s194J @ 10%.

Assuming A is a resident firm tds shud b deducted u/s 194J otherwise u/s 195(i.e. if A is Non resident) 

Dear Sir,

Agree with Miss Jyoti

In your case the service is being rendered by an Indian Company and it comes under the purview of Section 194J @ 10%

It is none of your concern to whom A is paying, Since you are going to make the payment to A therefore the above stated TDS rate would be applicable.

Since X has to make payment to A only,it is attracting 194J @ 10%

Dear  Mr Subhash,

The Main Question should be whether Legal  firm A is liable to Deduct tax when remitting the monies to Malaysian Legal Firm B. When A paid the total charges to B, whether it deducted, or was liable to deduct tax u/s 195. ??? A similar situation arises when an Indian Company raises funds overseas. it has to comply with a lot of local legal requirements abroad, and for this it is charged fees by the Foreign Law Firm. Will the Indian Company/ Indian Legal Counsel deduct tax when remitting the fees. Services are all rendered abroad ???