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Tds on professional fees

Manjunath (.) (75 Points)

09 May 2014

Sir

We are paying professional fees to Singapure based company with regard to Patenet fees. Are we liab;e to deduct TDS

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6 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 09 May 2014

Sir, You are liable to deducted TDS on Professional Fee. It is foreign payment and also check the rate of TDS of Foreign payment.

CA Kumar Ajay (Following My Dreams) (228 Points)
Replied 09 May 2014

TDS is definately deductible.........But whether rate as per DTAA are applicable or incometax act rate depends on many factors like nature of tranction, PE, entity holding valid TRC PAN etc.

So Better take professional advice or give each and every detail about the tranction and entity.

Regards

CA Kumar Ajay

cakumarajay @ hotmail.com

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 09 May 2014

Sir,

Plz forward the rate of TDS on Professional Fee regarding foreign payment as Patent to Mr. Manjunath.

Your earlier action in this reagrd would be highly appreciated.

CA. Dashrath Maheshwari (TaXpert) (15090 Points)
Replied 11 May 2014

See section 195. Rate of TDS will be 20% plus surcharge and cess on net amount being paid. You you need to calculate by reverse calculation. But if that foreign company has PAN then tax rate is 10% plus surcharge and cess.