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Tds on transportation paid to uae supplier

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Narayanan

Manager Finance

21 Points Posted on 19 February 2014

Good morning to all...

I have supplied Stell pipes to my India client, raised two invoices one for material and other for Transportation,

my client has deducted TDS in Transportation Invoice and remitted the balance amount to us, please let me know are they suppose to deducte the same and if so how would we claim back as there is no taxaction applicable here in UAE.

Replies (1)

Arvind Sharma

ACA

1090 Points Posted on 19 February 2014

TDS is deductable if income is taxable in the hand of receipient in India. Further, you have to check whether you has any business connection in India or not. Also, check DTAA between India and UAE.

Since, in your case, TDS has been deducted by Indian party, it implies the income is taxable in India and accordingly on the basis of limited information you provided, I can conclude you are also liable to file Income Tax Return here in India, where you will has to show Income taxable in India and will charge to tax and if tax comes to more than TDS, you has to pay differeitial or if tax comes to lower than TDS, you will get refund of TDS deducted.

I advise you to get proper consultancy on the matter.

Regards