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TDS on payment to foreign companies

VIVEK BARANWAL (CA.) (310 Points)

30 December 2010

In case of Foreign companies service tax liability is on service receiver.

Please advice while deducting Tax @ 20% or other rate service tax portion shall be added or not

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2 Replies

Dhawal Mohnot (Practicing) (449 Points)
Replied 30 December 2010

TDS is not deducted on a statutory liability irrespective of whom the payment is being made to .....

sankalp (Tax Consultant ( Income Service Sale Tax )) (107 Points)
Replied 30 December 2010

You have to deduct Tds on inclusive of service tax

Update:05.07.2008:A clarification regarding applicability of circular 4/2008 has been issued by the dept to bombay chamber of commerce and clarified that section 194 J is not covered under circular 4/2008 .hence tds should be deducted on service tax under section 194J(professional fees)

As per my consideration it is applicable for u/s 195