Tds on remittance to company at british virgin islands

The service provided by Foreign Company and the services provided is categorised under other services i.e. not under royalty or technical fess, so rate of tax will be 40% under section 195(i) further Surcharge of 2.5% if the remittance is more than Rs. 1 Crore and 3% Education Cess on Tax and Surcharge.

Agreed with Mr. Amit..

Dear Amit,

This is like a Joint Venture providing Recruitment Services to a Client in UAE. So Professional Services is Rendered abroad but Invoicing is by a company at India.

The company abroad is due for a SPLIT FEE say 50%.

Why should TDS be done?

If TDS is done how will the company abroad claim Refund of TDS?

Suresh