Our company is a foreign company ,we registered a branch in India and fulfilled projects for india company including supply and service. when they make payment to us , they will deduct TDS on the payment, what is the rate of TDS? 2.06%? TDS will be deducted on payment for both supply and service or just service? please tell me everything about this issue. thank you!!
1) Payment to Foreign company for supply of materials do not attract TDS.
2) Export of service do not attract Service Tax. For knowing the rate of TDS attracted please refer the DTAA(Double taxation avoidance agreement) entered into between India and country where Foreign company is located.
thank you very much.
SSGS and Associates
Chennai
CA Inter
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CAclubindia
