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Tds on payment to non resident ??

TDS 865 views 3 replies

Hello everyone,

 

my client is an ad agency. he published an ad in south african airlines magazines for his client who is India. Now he wishes to remit payment to the south african publication and has approached me for form 15CB.

some imp information

1. SA publication does not have any branch/office in india

2. My client will make payment in USD through HDFC bank ltd into the foreign current account of the non resident. (i think this is payment outside india )

3. service is provided outside india. 

 

My question :

Is TDS applicable in this case if yes then at what rate ? 

 

Replies (3)

there will not be any TDS implications in my opinion..

Since DTAA exist between India and SA, and Payment to Non-Resident who does not have PE, then no need to deduct TDS.

you should assure that non resident must give TRC,FORM 10F AND NO P.E DECLARATION.IF NON RESIDENT DOES NOT HAVE PAN NO THEN RATE WILL BE 20% OTHERWISE AS PER THE DTAA.AS PER AMENDMENT AFTER VODAFONE CASE NOW EVEN IF SERVICES RECEIVED OUTSIDE INDIA BUT UTILISED IN INDIA THEN TDS WILL BE APPLICABLE.THIS IS MY VIEW ONLY.PLEASE WAIT FOR OTHERS ADVICE.


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