Dear Sirs,
A foreign professor is conducting a training for us. He is a non-resident (SWISS)
He wants Rs.1 lakhs net. ie. we have to bear all W/H taxes.
Now a foreigner can take rupee payments (in cheque) and credit to his account, I believe..
Since the payment is to a non-resident, W/H tax u/s 195 is applicable, I presume.
my specific query is can S 195 be applied on rupee payments. Since payments has to be net of tax, we will hav e to gross up the payment and bear tax .
tax rate to be applied is for professional services.
regards
CAclubindia
