few employees from our co. are going to attend seminar in india this is conducted by 1 foreign co. they have charged for this in US dollars and we are paying also in dollars. In the bill they had not charged service tax and also without mentioned PAN.
can any one suggest me at what rate should i deduct tds on this or there would be no TDS at all?
GD Q.
its applying sec. is 195, under which you have to deduct tax.
but its providing professional services, so you have to consider that also,
i don't know the perfect ans , just give my view.
i think it should b taxable u/s194J if the company is resident (though it is a foreign company) in india, the activity comes under training for the employees of the company, which invloves professional or technical services by the foreign company
it is an foreign co.
the following income of the foriegn company are taxable in india if it is resident
1) Subject to the provisions of Income tax Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which—
(a) is received or is deemed to be received in
(b) accrues or arises or is deemed to accrue or arise to him in
(c) accrues or arises to him outside
Dear friend
If an employer hires an outside commercial coaching or training center for imparting some training to its employees, then the payment made by the said employer to such coaching centre will be chargeable to service tax.
CAclubindia
