Tds on the payment made to nr on transfer of technology

Ekta Parekh (CA) (24 Points)

19 June 2014  

we are paying some technical knowhow fees to a party in Netherlands but we have not utilised any services in india and are even not planning to utilise in future.We acquired 15CA CB from the consultant but he did not deduct tax on the basis of transfer of technology - income not due and arising in INdia. But our statutory auditors are not accepting.

Is this correct or we will have to pay tax, pls suggest.

As we are closing books, It would help me to take decision on urgent basis for FY 13-14.