Tds on payment received from foreign company

Please give your opinion on the below mentioned case:

Mr. A is collecting information on various medicines, their side effects etc. in india and upload this information to a web portal of an US company. The US company makes payment to him for the same through regular banking channels.

 

Queries:

 

1. Whether US company need to deduct TDS while making payment to Mr.A ?

2. Is this income is accrued in USA and taxed in USA ?

3. Can Mr. A claim any relief under DTAA if the same has been taxed in USA ?

 

Note: The US company does not have any permanent establishments or any agents in India.

 

Replies (3)

In my opinion,

This income is accruing in India and taxable in India. For the company, whether to deduct TDS or not, it depends upon US tax law. If Mr. A is suffering double taxation, refer DTAA....

Originally posted by : MADHU H S

Please give your opinion on the below mentioned case:

Mr. A is collecting information on various medicines, their side effects etc. in india and upload this information to a web portal of an US company. The US company makes payment to him for the same through regular banking channels.

 

Queries:

 

1. Whether US company need to deduct TDS while making payment to Mr.A ?

2. Is this income is accrued in USA and taxed in USA ?

3. Can Mr. A claim any relief under DTAA if the same has been taxed in USA ?

 

Note: The US company does not have any permanent establishments or any agents in India.

 

Answer

1.No, US company is not reqiured to deducted the TDS.

2.Income is Accuring in India and taxable in india.

3.Yes Mr. A can claim the relief.

Thanks & Regards

 

Originally posted by : MADHU H S


Please give your opinion on the below mentioned case:

Mr. A is collecting information on various medicines, their side effects etc. in india and upload this information to a web portal of an US company. The US company makes payment to him for the same through regular banking channels.

 

Queries:

 

1. Whether US company need to deduct TDS while making payment to Mr.A ?

Although the answer shall depend on the complete facts, but I feel that we can call the services provided by Mr. A as professional services in terms of Article 15 of India -USA DTAA , then no TDS should be deducted from US.

2. Is this income is accrued in USA and taxed in USA ?

The Income is accruing in India and should be taxed in India if provisions of Article 15 of India -USA DTAA are met.

3. Can Mr. A claim any relief under DTAA if the same has been taxed in USA ?

If income is taxed @ 15% (worst schenario) then definitely credit of tax deducted in US should be available in India.

Note: The US company does not have any permanent establishments or any agents in India.

 


Anuj

femaquery @ gmail.com
 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details